Trump administration’s block in Qualcomm vs. Broadcom merger should shake tech to its core

Trump administration’s block in Qualcomm vs. Broadcom merger should shake tech to its core

6 years ago
Anonymous $gIi3-PxxKB

https://techcrunch.com/2018/03/12/trump-and-cfius/

This weekend, I published a comprehensive overview of the epic hundred-billion-dollar Qualcomm versus Broadcom merger battle that has taken place over the past few weeks. In that post, I concluded that “… the Trump administration is going to attempt to maintain jurisdiction over the merger regardless of Broadcom’s redomicile process [back to the US], and will likely end up negative on the deal although it may not outright block it.”

Not only did the Trump administration move faster than expected to make a decision on the merger through CFIUS — the Committee on Foreign Investment in the United States (TechCrunch’s overview of the committee here) — but it decided to unilaterally block the transaction from taking place. While not unprecedented in the history of CFIUS, this is an incredible decision on a U.S. tech merger, and has massive ramifications for tech company valuations and strategy going forward.

Trump administration’s block in Qualcomm vs. Broadcom merger should shake tech to its core

Mar 13, 2018, 12:19am UTC
https://techcrunch.com/2018/03/12/trump-and-cfius/ >This weekend, I published a comprehensive overview of the epic hundred-billion-dollar Qualcomm versus Broadcom merger battle that has taken place over the past few weeks. In that post, I concluded that “… the Trump administration is going to attempt to maintain jurisdiction over the merger regardless of Broadcom’s redomicile process [back to the US], and will likely end up negative on the deal although it may not outright block it.” >Not only did the Trump administration move faster than expected to make a decision on the merger through CFIUS — the Committee on Foreign Investment in the United States (TechCrunch’s overview of the committee here) — but it decided to unilaterally block the transaction from taking place. While not unprecedented in the history of CFIUS, this is an incredible decision on a U.S. tech merger, and has massive ramifications for tech company valuations and strategy going forward.