Broadcom ends bid for rival Qualcomm after Trump intervention

Traders work on the floor of the New

Why did President Donald Trump kill a $117 billion tech takeover?

While blocking the deal doesn't mean that China won't become a dominant player in 5G anyway, it's one way they can slow that down.

The hostile takeover - Qualcomm had rejected Broadcom's offer - had been under investigation by the Committee on Foreign Investment in the United States, or CFIUS.

Several analysts have speculated that Singapore-based chipmaker Broadcom may now target Israeli big data connectivity company Mellanox Technologies Ltd.

But the United States is anxious that a takeover would dramatically reduce investment and research at Qualcomm, giving an advantage to China.

In addition, lawmakers have expressed concerns in the past about foreign companies gaining a foothold in USA telecom infrastructure, which could lead to spying or cybertheft. Companies including Qualcomm and China's Huawei have been investing heavily to stake their claim in the underlying technology.

Had it gone through, the acquisition would have been the largest technology deal in history.

Trump said that the government had come across "credible evidence" that a merger between the two companies "threatens to impair the national security of the US".

The Committee on Foreign Investment in the United States (CFIUS), which raised concerns about the Qualcomm deal with Trump, listed the highly leveraged nature of Broadcom's bid for its larger rival as a major concern coupled with the risk of the USA losing mobile technology leadership.

More news: Jordy Nelson Rumors: WR Interested in Joining Patriots, Raiders After Release

A shareholder meeting was scheduled for earlier this month to vote on the new board, however this was delayed until next month at the request of the Committee on Foreign Investment in the United States (CFIUS), which can prevent business deals where it's deemed could harm national security.

Congress issued a critical report on the Chinese tech firm in 2012 that effectively shut it out of the U.S. market.

After imposing tariffs on steel and aluminum imports, Trump is said to be mulling import levies on tech producs and consumer goods from China, on the grounds that the Chinese discriminates against American companies on technology transfer and violates United States intellectual property rights.

Can US stay ahead of China? The upcoming development of a 5G network has been such a high-profile nat-sec issue that the White House floated a trial balloon on nationalizing it a few weeks ago.

Broadcom has confirmed that it will withdraw its offer to acquire rival chip company Qualcomm.

Broadcom reacted by saying that it "strongly" disagreed that the deal raises any national security concerns, but by Wednesday it had conceded defeat.

"We'll have to see if management change is in the offing - it looks like investor confidence in management is low", said Stacy Rasgon, an analyst at Sanford C. Bernstein.

But that wasn't enough to convince Trump.

Related News:



Most liked

Meghan McCain calls Clinton family 'virus' in Democratic politics
Another former aide told the publication that it seems "the party has moved on from Hillary Clinton ". In other words, Reines knows that Trump's messages resonated deeply in the heartland of America.

Miley Cyrus sued for $300 million over 'We Can't Stop' copyright infringement
May is seeking a trial by jury, plus a halt to sales and performances of Cyrus' song as well as damages and legal fees. Listen to both songs below and judge the alleged similarities for yourself.

Microsoft to set up two data centres in the UAE
Etisalat is also consulting on migration and managed services to see to the smooth transition of business customers to the cloud. The new announcement expands Azure regions to 50 regions across the globe, which includes plans for 12 new regions.

Trump's pick to lead Central Intelligence Agency to face questions about torture
He suggested for Trump to fire other cabinet members like Education Secretary Betsy DeVos for her painful 60 Minutes interview. Tillerson never denied using the word. "We pray for the best for Secretary Tillerson in all his future endeavours".

YouTube To Use 'Information Cues' To Combat Fake News
Expect to see Wikipedia links in videos promoting conspiracy theories and issues that are very likely to spark heated debates. Essentially, these "information cues" will be small cards that appear directl below videos in the YouTube app.

McTominay called up to Scotland squad
Speaking at Hampden Park after announcing his squad, he said: "They are definitely prepared". He added: "It was enormously flattering, there's a huge interest in the national team".

Blaze pizzas for $3.14 for National Pi Day on Wednesday
Coco's Bakery Restaurant: Members of Coco's email club can get a coupon for a $3.14 slice of pie, according to representatives. Locations not participating in Pi Day are Disney Springs, Houston Airport, UCLA, Staples Center, and George Mason University.

Haseeb Drabu's PDP Leader exit will not affect allianve in govt: BJP
When contacted Syed Altaf Bukari confirmed to that he has entrusted with additional responsibility of Finance Department . While I understand and accept the decision of the party, to take to the media before talking to me was painful.

Pi Day: Google celebrates 30th anniversary of mathematical constant
Google states that this year is the 30th year of celebrating Pi day, as it was first recognised by physicist Larry Shaw in 1988. Close to a trillion places have been calculated of pi and since it is an irrational number, it can go upto infinity.

Ravens to release Danny Woodhead
For the first time since he was limited to just three games in 2014-15 did Woodhead fail to find the end zone in a season. He had 56 yards on 14 carries and 33 receptions for 200 yards in eight appearances during the 2017 season.

Nepal Parliament Re-Elect Bidhya Bhandari As President
The vote weightage of lawmaker of Federal Parliament is 79, whereas it is 48 of the lawmakers from the Provincial Council. Bhandari, who was backed by the ruling Communist bloc, was widely expected to defeat her sole opponent.

Halep topples Wang to reach Indian Wells quarter-finals
The 25-year-old Czech Pliskova blasted four aces and broke Anisimova's serve three times in the one hour, 32 minute match. To reinforce their hopes, Venus has to beat Carla Suarez Navarro or wildcard Danielle Collins in the quarterfinals.

Boots Riley's "Sorry to Bother You" Looks Insanely Funny from First Trailer
The film was a Sundance hit back in January, and marks the feature debut from writer-director and rapper Boots Riley . The film screened on Sunday at SXSW .

Main concern about new tariffs: Trade war
And there is now a race for the rest of the world to catch the exemption train, before it leaves the station in two weeks' time. Other world leaders expressed hope that deals would be made with the Trump administration to avoid tit-for-tat tariffs.

Ex-Boyfriend Arrested in Nicaragua
Police in NY say Tercero is a person of interest in the killing of Haley Anderson, also 22, of Westbury, on Long Island. Nicaragua's Canal 4 showed an image of a Nicaraguan passport with his name and photo.