Some smart people showed up in this thread.
10 replies (most recent on top)
Wouldn't the board be completely incompetent showing off material saying the company is worth $120+ post NXP and Apple settlement, but accepting $84? That would demonstrate they didn't believe the material they produced.
The current board will fold to the unbiased dollar if the offer hits $84.
Let's break this down without emotion. Let's just look at the unbiased dollar. The dollar doesn't care who wins this battle..
If you are a Qualcomm stockholder AND you believe Broadcom has the best future vision for the company, why are you still holding Qualcomm stock? You are going to wait 18 months for $2 in value? The unbiased dollar is sitting there laughing at you. Sell now for $68 and buy AVGO directly. You want to win on Broadcom stealing Qualcomm at $70 - you can only do that as a AVGO stockholder today. You will not win by getting 1 AVGO share for every 25 Qualcomm shares 18 months from now.
50% chance bid goes up to $78. 50% chance BRCM bails and stock sinks to $58. Stuck in the middle @ $68. There but for the grace of Hock go I.
Broadcom does NOT have the votes at $70.. What would be the point? Investors would bail right now at $68 instead of waiting 18 months for $2 more. Think about it.
BRCM has the votes at $70. If a higher price were needed (as is the case with NXP) the market price of Q would be over $70 but it is not currently at $68. No need to raise price unless BRCM loses the vote, which looks unlikely.
I expect a two step process.. Next offer will be $78 and then $85 right before March 6th.
T_V
$71 here we come! We are all going to get rich off this.