Broadcom ‘mulls $100bn bid for Qualcomm’

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.