Microsoft and Google are apparently worried about Broadcom's reputation for cost-cutting, that might stagnate innovation in the industry.
OnePlus TV 32Y1 - Smarter TV
Android TV with superior craftsmanship and elegant design - Buy Now
Click here to know moreAdvertisements
One of the concerns is that Broadcom could stagnate innovation in Qualcomm since the company apparently has a reputation for cost-cutting. On the other hand, Google and Microsoft are also concerned about the deal's impact on the Apple-Qualcomm relationship. Broadcom is "pretty tight" with Apple, which could be detrimental to Google and Microsoft in the long run.
That said, Qualcomm rejected a $103 billion bid from Broadcom last month. The company said the offer undervalued Qualcomm and would come under regulatory problems. "The Board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty," Tom Horton, Presiding Director for Qualcomm, said in a statement.
Further, sources told CNBC that Qualcomm has directed Google, Microsoft and other companies not to make public statements against the deal. The company apparently wants to find out whether Broadcom will increase its offer.
The report also cites a possible improvement in Qualcomm's relationship with Apple if Broadcom takes over. The two companies have been embroiled in a court battle recently, with Qualcomm alleging that Apple's infringing on its patents. The company is even trying to get the 2017 iPhones banned in the US. While the case is ongoing at the moment, it could lead to a permanent breakage in the two companies' relationship, and Apple could stop using Qualcomm's chips altogether.
That said, it seems Hock Tan, Broadcom's CEO, has "privately expressed optimism" on settling with Apple if his company were to take over.
Popular Mobile PhonesView All
Digit caters to the largest community of tech buyers, users and enthusiasts in India. The all new Digit in continues the legacy of Thinkdigit.com as one of the largest portals in India committed to technology users and buyers. Digit is also one of the most trusted names when it comes to technology reviews and buying advice and is home to the Digit Test Lab, India's most proficient center for testing and reviewing technology products.
We are about leadership-the 9.9 kind! Building a leading media company out of India.And,grooming new leaders for this promising industry.