Broadcom offers to buy mobile chipmaker Qualcomm for $103 billion

Nov 6 (Reuters) - Communications chipmaker Broadcom Ltd on Monday said it offered to buy smartphone chip supplier Qualcomm Inc for $70 per share or $103 billion in cash and stock, in what would be the biggest technology acquisition ever.

A tie-up would combine two of the largest makers of wireless communications chips for mobile phones and raise the stakes for Intel Corp, which has been diversifying into smartphone technology from its stronghold in computers.

Broadcom's offer is at a premium of 27.6 percent to Qualcomm's closing price of $54.84 on Thursday, a day before media reports of a potential deal pushed up the company's shares.

RELATED: Salaries at 25 top tech companies

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Salaries of employees at 25 top tech companies
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Salaries of employees at 25 top tech companies

Google

Average annual bonus: $32,478

Average sign-on bonus: $27,547

Average annual base salary: $136,000

Netflix

Average annual bonus: $0

Average sign-on bonus: $3,520

Average annual base salary: $206,000

Twitter

Average annual bonus: $120

Average sign-on bonus: $26,144

Average annual base salary: $149,000

Apple

Average annual bonus: $20,298

Average sign-on bonus: $27,201

Average annual base salary: $102,000

Facebook

Average annual bonus: $33,225

Average sign-on bonus: $45,708

Average annual base salary: $145,000

Oculus VR

Average annual bonus: $395

Average sign-on bonus: $6,926

Average annual base salary: $119,000

Amazon

Average annual bonus: $24,732

Average sign-on bonus: $41,340

Average annual base salary: $118,000

Square

Average annual bonus: $988

Average sign-on bonus: $17,996

Average annual base salary: $134,000

Uber

Average annual bonus: $31,633

Average sign-on bonus: $1,807

Average annual base salary: $117,000

Pinterest 

Average annual bonus: $4,374

Average sign-on bonus: $33,376

Average annual base salary: $151,000

Tesla

Average annual bonus: $4,779

Average sign-on bonus: $19,447

Average annual base salary: $105,000

UnitedHealth Group

Average annual bonus: $7,280

Average sign-on bonus: $118

Average annual base salary: $87,000

Snap Inc.

Average annual bonus: $10,588

Average sign-on bonus: $23,705

Average annual base salary: $127,000

Hewlett Packard Enterprise Co.

Average annual bonus: $10,756

Average sign-on bonus: $8,265

Average annual base salary: $131,000

CSRA

Average annual bonus: $13,732

Average sign-on bonus: $1,186

Average annual base salary: $100,000

credit: Facebook

Capital One

Average annual bonus: $15,114

Average sign-on bonus: $8,568

Average annual base salary: $107,000

Fitbit

Average annual bonus: $18,069

Average sign-on bonus: $25,459

Average annual base salary: $128,000

Pandora

Average annual bonus: $22,316

Average sign-on bonus: $18,886

Average annual base salary: $109,000

Microsoft 

Average annual bonus: $23,224

Average sign-on bonus: $20,191

Average annual base salary: $179,000

Airbnb

Average annual bonus: $23,250

Average sign-on bonus: $23,250

Average annual base salary: $124,000

Arista Networks

Average annual bonus: $27,497

Average sign-on bonus: $18,652

Average annual base salary: $151,000

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Linkedin

Average annual bonus: $32,216

Average sign-on bonus: $25,418

Average annual base salary: $149,000

Dropbox

Average annual bonus: $32,707

Average sign-on bonus: $32,833

Average annual base salary: $144,000

VMware

Average annual bonus: $33,145

Average sign-on bonus: $18,851

Average annual base salary: $147,000

Salesforce

Average annual bonus: $39,959

Average sign-on bonus: $28,314

Average annual base salary: $142,000

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Qualcomm shareholders would get $60 in cash and $10 per share in Broadcom shares. Including debt, Broadcom's bid values the transaction at $130 billion.

"In our view, $70 per share wouldn't be sufficient," Nomura Instinet analyst Romit Shah wrote in a client note.

Qualcomm is trying to close its $38-billion acquisition of NXP Semiconductors NV, one of the largest makers of chips for vehicles and expanding into self-driving technology.

Broadcom said its proposal stands irrespective of Qualcomm's acquisition of NXP goes through or not.

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The most stressful US tech companies

No. 10: SAP

% High Job Stress: 65%

Mid-Career Median Salary: $143,000 

Photo credit: Reuters 

No. 9: Intel

% High Job Stress: 65%

Mid-Career Median Salary: $126,000 

Photo credit: Reuters 

No. 8: GoDaddy

% High Job Stress: 67%

Mid-Career Median Salary: $99,000 

Photo credit: Getty

No. 7: Fujitsu

% High Job Stress: 68%

Mid Career Median Salary: $108,000 

Photo credit: Getty

No. 6: Uber

% High Job Stress: 70%

Mid Career Median Salary: $149,000 

Photo credit: Reuters 

No. 5: Tesla Motors

% High Job Stress: 71%

Mid Career Median Salary: $110,000 

Photo credit: Reuters 

No. 4: Samsung

% High Job Stress: 74%

Mid Career Median Salary: $135,000

Photo credit: Reuters 

No. 3: InsideSales

% High Job Stress: 75%

Mid Career Median Salary: $107,000

Photo credit: PayScale

No. 2: Airbnb

% High Job Stress: 75%

Mid Career Median Salary: $123,000 

Photo credit: Getty

No. 1: SpaceX

% High Job Stress: 86%

Mid Career Median Salary: $80,800 

Photo credit: Reuters

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Shah believes Broadcom would encourage Qualcomm to complete its NXP acquisition as it has extensive distribution channels, scale and exposure to the fastest growing segments in automotive, where Broadcom is underpenetrated.

Broadcom said BofA Merrill Lynch, Citi, Deutsche Bank, JP Morgan and Morgan Stanley have advised that they are highly confident that they will be able to arrange the necessary debt financing for the proposed transaction.

Qualcomm shares, which traded over $70 as recent as December 2016, closed at $61.81 on Friday.

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Bernard Orr)

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