Bloomberg News is reporting that chipmaker Broadcom Ltd is considering a bid of more than $100 billion for smartphone chip supplier Qualcomm Inc, which is currently involved in a massive legal battle with Apple.
Such a deal, if allowed, would create a roughly $200 billion company in what would be the biggest technology acquisition ever.
Apple is challenging Qualcomm’s business practice of charging a percentage of the total price of iPhones and other Apple devices as a licensing fee for its patents.
Broadcom and Qualcomm declined to comment.
Bloomberg reported that an offer of about $70 a share from Broadcom would include cash and stock and is likely to be made in the coming days — but a final decision on whether to proceed has not been made.
Qualcomm shares closed up 13% at $61.81.
The Broadcom proposal raises questions about whether Qualcomm will be able to close its pending $38 billion acquisition of NXP Semiconductors NV.