After a tumultuous few months of effort, Broadcom has officially signaled on March 14 that it will no longer pursue an acquisition of rival chip vendor Qualcomm. The moves comes a day after President Trump released an order blocking the deal.
Broadcom initially made a public play for Qualcomm in November 2017 with a massive $130 billion bid. The goal for Broadcom was nothing less than to remake the networking and mobile chip markets, as 5G adoption looms.
For its part, Qualcomm wanted no part of Broadcom’s offer and acted quickly to publicly reject the bid.
What was shaping up was a potentially hostile takeover with Broadcom aiming to influence Qualcomm’s board of directors.
On March 5, the U.S Department of the Treasury’s Committee of Foreign Investment in the U.S (CFIUS) sent a letter to Broadcom’s attorneys warning that they would not approve the deal.
“CFIUS has identified potential national security concerns that warrant a full investigation of the proposed transaction,” the letter states. “Articulation of the potential national security concerns, in significant part, is classified.”
On March 12, President Trump issued an Executive Order, based on the recommendation of CFIUS to block the Broadcom bid.
“Although we are disappointed with this outcome, Broadcom will comply with the Order,” Broadcom stated. “Broadcom’s board of directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process.”
Though Broadcom has been blocked from buying Qualcomm, the company still plans on moving its headquarters from Singapore to the U.S.
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.