back to article Broadcom baits hook with promise of $1.5bn investment fund to catch Qualcomm

Broadcom says it will earmark $1.5bn for funding of 5G wireless broadband networks as part of its proposed acquisition of Qualcomm. The chip designer said Wednesday that, should its $117bn buyout plan for Qualcomm go through, it will set up a $1.5bn fund to "focus on innovation to train and educate the next generation of …

  1. Anonymous Coward
    Anonymous Coward

    Bait?

    I wonder how much $$$ Qualcomm has in the bank?

    When Broadcomm takes over they get the contents of QC's Bank. If that is more or even close to this $1.5B then their cost is zero or close to it for this little sop to Investors.

    This sort of thing is very common in takeovers. Having cash in the bank actually weakens your position in a hostile fight.

    1. Eddy Ito

      Re: Bait?

      Easy enough to find out. MarketWatch puts them with ~$35B in cash & cash equivalents, $65B total assets, and about $35B total liabilities.

      That said, I think this is at least as much about the current CEO Hock Tan saving face as the actually benefit from the takeover. At this point it doesn't much matter since having the US deny the takeover would still allow him to save face provided he doesn't go too far down this road. Which means as long as he stays away from slamming folk on Twitter or offering stupid money like a quarter trillion dollars, he's probably good.

  2. Anonymous South African Coward Bronze badge

    Cue Dr Evil pinky meme and "We promised, but we did not say when"........

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