Wednesday, July 25, 2018

Qualcomm Ends Bid to Acquire NXP, Ships 220M Chips

Qualcomm today said it will drop its plans to purchase China-based NXP at the end of the day, which is when the acquisition agreement expires. Qualcomm first announced its intent to buy NXP, which makes semiconductors, in October 2016. Qualcomm has been awaiting approval from China's antitrust regulators and thus far not received it. When the agreement expires tonight, Qualcomm will find itself on the hook for a $2 billion termination fee. The original deal was valued at about $44 billion. The Chinese government hasn't said why it refused to approve the deal. In its most recent financial quarter, Qualcomm raked in $5.6 billion in revenue. The company says it shipped 220 million chips and generated $1.2 billion in net income.



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