Broadcom Takeover of Qualcomm Blocked By Trump

Posted by rgmekanic 7:35 PM (CDT)

Monday March 12, 2018

The Washington Post is reporting that President Trump has issued a Presidential Order for Broadcom to abandon it's hostile bid to acquire Qualcomm. In the order President Trump cited "credible evidence" that the takeover "threatens to impair the national security of the United States." Last week the Committee on Foreign Investment called the takeover a National security risk, and was launching an investigation.

Well that finally spells the end of the saga. I commented last week that I was completely for the investigation, as putting your entire nations wireless communication in the hands of one company, let alone a foreign one, was a bad idea, and it appears that President Trump agrees. Hopefully now Qualcomm can innovate without this hostile takeover looming.

One factor that may have pushed CFIUS to move quickly was a unusual maneuver by Broadcom to relocate to the United States. The company had said in a recent corporate filing that it was finalizing its plans to become an American entity in early April. Deals between American companies fall out of CFIUS' jursidiction.