Qualcomm | $QCOM Stock | Shares Bolt Higher On Buyout Rumors




Just days after it was announced that broadcom was abandoning their buyout for competitive Qualcomm, news hit the wires in the aftermarket on Thursday March 15th, 2018 that stated that the former Qualcomm Chairman, Paul Jacobs,  is reportedly seeking funding so he can infact buy the company that he used to run.

The news hit the wires shortly after 6 p.m. eastern Daylight time. Shares close the regular trading session at $59.89 which was barely changed on the day. However in the after-hours session once this news started circulating shares shot up quickly and Round Up closing at $62.78 or up 4.83%.

Jacobs is still a member of qualcomm’s board even though he left the position of chairman just as recently as last week. It will be interesting to see if he can gather enough funds and backing to actually pull it off. It is rumored he would have to amass more than $120 billion dollars to actually pull it off.

If the markets feel that this is too much for the former chairman to actually pull off, shares might actually give up all of these aftermarket games and make new or Lowe’s due to the fact that too buyout attempts or discussions will have then failed. The first one failed last week when  President Trump announced his administration was blocking the purchase of Qualcomm by Broadcom.

Executive Comments

Venky Ganesan, an investing partner at Menlo Ventures had this to say about the Trump-blocked merger:

“There is a very thin line between national security and economic protectionism and the use of an executive order to block this merger traverses this line very delicately,”.

The Charts


The above price chart is the daily price action going back about 6 months for Qualcomm. You can see how it gapped down in the last couple of days once news was released at Broadcom had abandoned their buy-out interest.


The above price chart shows the 5-minute price action for Qualcomm on the right- once news had been released indicating a possible buyout by the former chairman prices shot up fast

Company Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).

The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, and/or long term evolution standards and their derivatives.

The QSI segment invests in early-stage companies in various industries, including automotive, Internet of things, mobile, data center, and healthcare for supporting the design and introduction of new products and services for voice and data communications, and new industry segments.

The company also provides products and services for mobile health; products designed for the implementation of small cells; development, and other services and related products to the United States government agencies and their contractors; and software products, and content and push-to-talk enablement services to wireless operators.

In addition, it licenses chipset technology, and products and services for use in data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California. –YahooFinance