Broadcom proposes to buy Qualcomm for $130 billion

Broadcom made a $130 billion bid to acquire rival chip maker Qualcomm. If the deal happens, it would be the biggest technology acquisition ever.

Broadcom made an offer of $70 a share in cash and stock for Qualcomm, the world's largest maker of mobile phone chips. The proposed transaction is valued at approximately $130 billion on a pro forma basis, including Qualcomm's $25 billion of net debt.

Buying Qualcomm would make Broadcom the third-largest chipmaker, behind Intel and Samsung Electronics.

"This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products,” Broadcom CEO Hock Tan said in a statement.

"We would not make this offer if we were not confident that our common global customers would embrace the proposed combination. With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value."

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