Qualcomm Board of Directors Unanimously Rejects Broadcom's Unsolicited Proposal (qualcomm.com) 31
U.S. chipmaker Qualcomm on Monday rejected rival Broadcom's $103 billion bid to purchase the company, stating that Broadcom's proposal "dramatically undervalues" Qualcomm and comes with "significant regulatory uncertainty.".
Also, it's redundant [Re:Redundant summary] (Score:2, Funny)
You can say that again (Score:4, Interesting)
Anyone noticed that AVGO (broadcom stock symbol) has a PE ratio of 225-275 while Qualcom is near 20-30.
It's not that the offer isn't right, and based on qualcoms stock history it's about right, its that if they pay in stock instead of cash it's trading bad shares for good.
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Anyone notoced that AVGO forward PE is 14-15 while QCOM is around 17-18. So looking forward the AVGO shares are a better deal?
For shareholders AVGO is a better run company, will make shareholders better gains short term (5-10 years). QCOM may be a better engineering company with better future returns, but your investor is going to have to weigh that up.
I predict a slightly higher offer and the shareholders will want their short term gain - current management is not going to give it to them, AVGO management
Re: You can say that again (Score:2)
Want to know how they are achieving that low forward PE? Buying companies with low PE using their high PE stock. Thus dropping their High PE towards the company they purchased.
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Amazon's PE ratio is 289. These companies forego profit to invest in their infrastructure and R&D, so PE is expected to be high. Quarterly profits are not their current goal.
Re: You can say that again (Score:2)
If you never make a profit the bottom turtle collapses.
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Re: Blame the DOJ (Score:3)
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I think it relates more to the prices of their shares. They offered to buy them out at $X/ea., which just happened to come out to $103B.
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