Broadcom trimmed its hostile takeover offer for Qualcomm on Wednesday in the wake of the San Diego company agreeing to pay more for Dutch automotive chip maker NXP Semiconductors. The grand chess game between semiconductor giants Broadcom and Qualcomm is probably set to continue for a while longer, but unsurprisingly, the prospective buyer's latest move makes a successful takeover conclusion even less likely than way back in November.
Broadcom's new offer is $79 per share - $57 in cash and $22 in Broadcom stock - should NXP be included in the deal. Shareholders will vote for either Broadcom's candidates or Qualcomm's existing board at its annual shareholder meeting March 6.
In a nutshell, Qualcomm is deemed "far more valuable with NXP than without", an opinion Broadcom categorically dismissed just yesterday.
Qualcomm is raising its takeover bid for NXP Semiconductors by almost 16 percent to about $43.22 billion, citing in part NXP's strong results since the companies first announced their merger in October 2016.
The drop from Broadcom's previous bid of $82 per share came after Qualcomm increased its share offer to take over NXP from $110 to $127.50 per share earlier this week due to several NXP shareholders objecting to the price.
If completed, it would make Qualcomm more expensive for Broadcom to acquire, and likely complicate an already hard antitrust review of the Qualcomm-Broadcom combination - which at $121 billion would be the largest semiconductor merger ever.
Qualcomm's NXP acquisition has received approval from eight global regulators but still needs the green light from China.