What Qualcomm Tie-Up Means for Broadcom Bid

On Feb. 20,

From the Qualcomm-Broadcom merger perspective, the deal makes Qualcomm a relatively less attractive target for Broadcom. Broadcom has stated that it will proceed with its bid for Qualcomm (currently at $82 per share) regardless of whether Qualcomm abandoned its NXP bid or closed the deal at its original $110 deal price, but it was publicly against a price higher than $110 for NXP. We will also maintain our $255 fair value estimate for narrow-moat Broadcom and view shares as fairly valued, again as our Broadcom valuation is not contingent on a merger with Qualcomm.

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