What a wild week. Besides Apple hitting a grand slam home run out of the park with their earnings yesterday and iPhone X mania raging around the globe overnight and today, there was Qualcomm suing Apple again, Broadcom announcing that they're moving back to the U.S. and investing billions in new manufacturing capabilities, and ending with a blockbuster rumor that Broadcom could actually acquire Qualcomm.
Reuters reports that "Communications chipmaker Broadcom Ltd is planning to unveil a bid for smartphone chip supplier Qualcomm Inc by Monday, two sources familiar with the matter said on Friday, an attempt to create a roughly $200-billion company in what would be the biggest technology acquisition ever.
It's such a blockbuster deal it's hard to take it seriously just because of the size of it. On the other hand, if it actually pans out, then I'd have to say that Qualcomm saw the writing on the wall. With Fair Trade Commissions in Korea and Taiwan hitting them hard with record finds and the U.S. FTC suing them for forcing Apple to use their chips and Apple's determination to break Qualcomm's licensing scheme, selling out to Broadcom now could actually save the company from legal disaster.
But until the announcement is officially made and is able to pass the legal hurdles, it's still just a rumor. On the other hand, Broadcom's public announcement with President Trump yesterday may have been a prerequisite for the deal to even pass the laugh test.
What that would mean for Apple is unknown, but Broadcom wouldn't buy it if it thought it had to fight Apple's battery of lawsuits. So a deal with Apple would be something that Broadcom would love to have. Stay tuned, this could get interesting if the deal gets the green light.
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