Broadcom Ltd (AVGO.O), led by dynamic Chief Executive Hock Tan, is unlikely to put the brakes on an acquisition spree after its $117 billion bid for Qualcomm Inc (QCOM.O) was blocked by U.S. President Donald Trump on national security grounds.
That was the immediate reaction from Wall Street’s tech sector analysts to Trump’s surprise intervention on Monday afternoon to block what would have been the biggest ever tech merger.
“We’ll see if there is anything else Broadcom can do to fight but given a likely long timeframe for a battle, and the fact that (U.S. government panel) CFIUS seems so arrayed against them, we suspect they may be near the end of their rope,” Bernstein analyst Stacy Rasgon said.
Broadcom could not be immediately reached for comment.
While a Qualcomm deal would have made Broadcom the dominant supplier of chips used in smartphones and brought the company to the forefront of developing technology for the next generation of mobile network technology (5G), it can still make a string of smaller deals to build heft.