Broadcom is currently engaging in a hostile take over bid against Qualcomm after the later company rejected their record $130 billion bid last month. Broadcom is currently attempting to replace Qualcomm’s board with new directors who would more friendly to the deal.
MSN reports that Qualcomm partner Microsoft and Google are both opposed to the deal, as it would primarily benefit rival Apple and would interfere with Qualcomm’s 5G investment. Broadcom reportedly has a reputation for cutting costs instead of investing in new technology, something more likely if they take on massive debt to purchase Qualcomm. Microsoft and Google perceive an independent Qualcomm as being more closely aligned with their interests than a Broadcom-owned Qualcomm that is in bed with Apple. Qualcomm is currently involved in intense litigation with Apple around patents and accusations of anti-competitive behaviour.
Both Google and Microsoft reportedly expressed concern to Qualcomm regarding the deal, but have been asked not to express the concerns publicly, while Qualcomm assesses whether Broadcom will up their $70 per share bid.
Regulators may be influenced by concerns expressed by industry, though Broadcom has cosied up to the current Trump administration by promising to bring their headquarters to the USA. The current regulatory environment has also not been active with anti-trust enforcement.
Microsoft has just announced the release of PCs powered by Qualcomm’s Snapdragon 835 processors specially adapted to the form factor, with plans to use the next generation also.
No official comment was available from any of the parties.