- Broadcom announced an offer of $130 billion for Qualcomm on Monday.
- Shares of both companies are rising after the news.
- The deal, if it goes through, would be the largest-ever takeover in tech.
- Click here to watch Qualcomm’s stock price move in real time.
Broadcom is up 2.31% to $279.95 and Qualcomm is up 4.57% to $64.63.
Broadcom said on Monday that it is offering Qualcomm $60 in cash per share and $10 per share in Broadcom stock, valuing the deal at about $130 billion.
The deal represents a 28% premium to Qualcomm’s share price prior to rumors of the deal which sent the stocks higher last week. As of Monday, shares of Qualcomm are still about 8% lower than the $70 per share offer price.
The deal stands regardless of the results of Qualcomm’s $110 per share bid for NXP Semiconductors, Broadcom said in a news release. Qualcomm recently agreed to buy NXP for a total of $47 billion in an all-cash deal.
Qualcomm is currently in a multi-front legal battle with Apple, as the iPhone maker accused Qualcomm of misusing its massive collection of patents for essential smartphone components.
A combined Broadcom and Qualcomm would represent the third-largest chipmaker for smartphones behind Intel and Samsung, according to Bloomberg.
Broadcom is up 56.32% this year.