Yike and Apple were in a patent lawsuit with Qualcomm. Avago took the opportunity to jump out and make a hostile acquisition of Qualcomm. Then Intel and Yike attempted to jointly acquire Broadcom. After Broadcom lost a CEO, the new CEO turned around and had an affair with Qualcomm.
Get up...
Lively! So lively!
I thought it was just a bustle related to patent monopoly, but in just two months, one after another M&A dramas appeared in front of me.
The Chinese media spent a lot of time just sorting out the main context of the incident. As for delving into the details of the past few months, it would require multiple reports. However, Mr. Fang rushed to America, and he really went to the Three Treasures Palace for nothing.
As soon as he arrived there, the situation was stirred up.
I heard that Mr. Fang also attended the appeal hearing, but I don’t know what it looks like now.
On June 23, the stock prices of Qualcomm and Broadcom, which were reported to be successfully negotiated, both rose. The former has risen by 4% in the past few days, while the latter has risen by 19%.
It seems that Qualcomm found a good time to intervene at the right time.
And Broadcom...
Why did it turn to Qualcomm after already negotiating with Intel and Yike?
There is only one answer, Qualcomm’s bid is higher.
Branch, the new CEO, also doesn't mind if the company is acquired. However, compared to the two companies that former CEO Sturt hooked up with, the weak Qualcomm needs this acquisition more, so it is easier to negotiate the price.
As for who has better room for development, now everyone has to sell themselves. Of course, the most important thing is price.
Qualcomm made a good bid and said it was open to talks, but the two companies are now in a dilemma due to public opinion and appear to be very hesitant. The choice is naturally obvious.
The company's market value hit a three-month high, returning to US$76 billion, which made Jacob feel extremely good. Seeing that there was no movement at Avago in Singapore made him feel even better.
Although Avago has received support from many financial institutions, its own strength is ultimately not strong enough. As long as the merger between Qualcomm and Broadcom is successful, Chen Fuyang will never be able to stand in front of him again.
Broadcom had a market capitalization of US$28 billion before its stock price rose due to the news of the merger. Broadcom and Qualcomm are complementary in business and will definitely have the effect of 1 plus 1 being greater than 2. This will definitely allow Qualcomm to cross the 100 billion mark again.
dollar mark.
100 billion US dollars! Can Chen Fuyang afford this?
Absolutely impossible!
As long as the offensive from Avago is successfully resolved, and the reorganized Qualcomm wins the patent lawsuits against Yike and Apple, the crisis that has been raging for several months will be completely resolved!
Jacob even wanted to thank Mr. Fang. The reason why he changed his strategy to acquire Broadcom this time was inspired by the joint action of Intel and Yike, and the communication foundation laid by these two companies with Broadcom was also used by Qualcomm.
It was only in the past few days that Jacob learned about the efforts of the previous two companies, not only the active promotion of Fang Zhuo, the head of Yike, and Brian, the head of Intel, but also Microsoft's Ballmer.
and among them.
These people communicated secretly, obviously expecting some resistance, and wanted to finalize the things that could be finalized in advance.
Jacob was even more frightened and felt happy.
This year Qualcomm's shareholder meeting is on July 2. Although there are still small differences with Broadcom on price, in order to show the sincerity of cooperation between the two parties, he plans to invite CEO Blanche to the scene as a declaration.
A complete defeat of an outside hostile takeover.
However, as if in a desperate struggle, Avago issued another acquisition offer on the last day of June. Compared with the second offer of $85 billion, this time it was raised to $89.5 billion.
This is already a full US$14.5 billion higher than the US$75 billion first proposed. This is definitely not a small number.
However, the merger between Qualcomm and Broadcom was imminent, and Jacobs convened the board of directors to discuss and evaluate, and it took almost no time to make the easiest decision.
reject.
Chen Fuyang was rejected for the third time.
However, after being rejected this time, he did not remain silent as before. Instead, he directly asked Avago to submit a new board of directors list to Qualcomm as a minority shareholder of Qualcomm and requested a vote at the shareholders' meeting.
"Jacob and others are completely unable to judge the direction of industry development, and the current board of directors is completely unable to represent the interests of all shareholders. We demand the re-election of the board of directors!"
"In particular, Jacob, the CEO, is also extremely incompetent. He has almost offended the three major customers in the high-end mobile phone market. If it were not for Samsung's own problems, Qualcomm would now be surrounded by the three companies."
"I must warn Qualcomm that the company has reached a very dangerous situation. Jacobs does not have the ability and courage to lead the smooth development of the company!"
Chen Fuyang gave Qualcomm a eloquent notice and named Jacob again.
Jacob didn't panic, he just felt that this person was really a clown, and this request for re-boarding was just an act to vent his anger. How could he win on Qualcomm's home court?
Facts have proved that there were no surprises.
Two days later, Qualcomm held a shareholder meeting to discuss major decisions and future plans. Jacobs introduced the development and challenges of the past year, and also talked about changes in the competitive situation in the industry. Then he introduced Broadcom CEO Blanche who was present.
, enthusiastically explained the wonderful scene after the merger between the two companies.
After all this, the small shareholder Anhua Gao finally came to the proposal to re-elect the board of directors.
The results came out quickly, and the proposal failed miserably. Only 7% of the shareholders who voted on the spot supported it. Everyone felt that the current board of directors and CEO Jacob had found a new development path, and naturally it was this second generation who would take charge of the company.
Jacob sat on the stage and announced the result of the proposal. He looked at Singapore's Chinese CEO with a victor's eyes condescendingly. Admittedly, the head of Avago, whom he did not take seriously, did bring some pressure.
But there is ultimately a difference between strength and weakness.
"I don't think Jacob is suitable for such an era of radical change. Everyone, times have changed. Qualcomm's future is very dangerous." Chen Fuyang's proposal failed. He was disappointed and angry and still promoted it to all the shareholders present.
View.
Some shareholders mocked: "Are you the most suitable?"
"I think Mr. Fang is more suitable. Can you invite Mr. Fang here?" Chen Fuyang retorted, "At least I am more suitable than Jacobs. At least I will not let Qualcomm be surrounded by enemies."
Seeing that this person failed in the proposal but still spoke harshly, the shareholders at the scene spoke out one after another.
However, Chen Fuyang no longer refuted, just shook his head, stood up and led his team to leave the Qualcomm shareholders meeting early. There was no way, no way, it couldn't be done.
Hostile takeovers are indeed not that simple. Qualcomm is too big, and a random acquisition like this can overwhelm Anwar, so we have to take risks.
Chen Fuyang left the scene disappointed on his face, but a little excited in his heart.
He knew what would happen next, but instead prayed that Qualcomm would get Broadcom done quickly.
However, there is no need for Chen Fuyang to pray. Qualcomm itself is afraid of long nights and nightmares, and the clown Envago will have to retreat if he is tricked by some subterfuge. The twin giants like Intel and Yike are the competitors that the company really values.
A week after the shareholder meeting, Qualcomm and Broadcom held close negotiations and quickly cut through the trouble to implement the final acquisition price of US$35 billion.
Qualcomm acquired Broadcom for US$15 billion in cash and US$20 billion in stock, making it the largest technology acquisition in history.
As soon as the news came out, the stock prices of both companies soared.
Some media lamented the speed of this merger and acquisition, Qualcomm's snatching of food from the tiger's mouth, and the changes in global industry development, and gave a very representative evaluation - Broadcom's acquisition symbolizes the end of the era of communications semiconductor companies.
.
Some media tried to interview Intel and Yike, but received no response.
Qualcomm's market value has returned to US$80 billion. It seems that it has finally had the last laugh after a series of storms.
Jacob was relieved when he finalized the acquisition plan, and posted an extremely emotional post on Twitter.
——It’s getting better, everything is getting better.
As CEO, Qualcomm has encountered great challenges since the beginning of the year. One after another, Jacobs' nerves are very tense. Now he is leading the largest technology acquisition in history, which is expected to severely damage the competition between Intel and Yike.
Conspiracy, this is the best start to the second half of the year!
When the merger is completed and Qualcomm completely digests Broadcom, the original constraints will no longer exist, and the company's reliance on a single business will become a thing of the past.
Jacob was thinking about the benefits of mergers and acquisitions, and he felt as if he had learned lessons from experience, and re-recognized the benefits brought by mergers and acquisitions, which was originally a relative misunderstanding.
July 12th, an ordinary Monday.
Jacobs was reading Broadcom's business analysis and considering the fine-tuning of some executives' positions through acquisitions when the landline in the office rang loudly.
For some reason, his heart skipped a beat, and he reached out and pressed the phone.
"Sorry, Jacob, China has not approved our acquisition of Broadcom!" The voice coming from the landline was so excited that it broke at one point.
After hearing these words, Jacob felt dizzy.
He shook his head hard, trying to hear what was behind him.
"They are worried that this will significantly enhance our market dominance in the field of mobile communication chips. The previous antitrust investigation has not yet ended, but it has been initially confirmed that Qualcomm has monopolistic behavior..."
"Also, it is believed that it will have an adverse impact on the competitive landscape of the relevant market..."
"They also said that they considered whether the merger would affect the procurement costs of downstream companies and the rights and interests of consumers..."
"Finally, not approved..."
The world in front of Jacob's eyes became a little clearer, but after listening to these words, thinking about the previous preliminary investigation results, and thinking about the hanging knife, he felt that his mouth was dry, and he wanted to say but could not speak.
China hardly opposes such mergers and acquisitions. The last time it opposed was in 2008, when Coca-Cola acquired Huiyuan, which involved Chinese companies. Now, American companies acquire American companies...
As a rule, there are almost no surprises!
A figure appeared in his mind, a figure that made him want to rush up and stab him twice.
Will there be anyone else?
Jacob didn't respond to the call and roughly pressed the phone.
He was stunned for a while, and when he used his hand to drag the mouse again, he felt his arms shaking unconsciously. The announcement of this kind of news from China would definitely... lead to a sharp drop in the stock price...
Jacob took two deep breaths. After all, he still didn't have the courage to open the company's stock price page, but he clicked on Twitter.
The reposted message popped up on the page.
Chen Fuyang reposted a tweet he made a few days ago.
——It’s getting better, everything is getting better.
Jacob's vision was hazy for a while. He wanted to shout but only gave a vague roar. He grabbed the mouse with his right hand and smashed it against the computer.
Plop!
There was a crisp sound, like the sound of a broken dream. ()
