Should Broadcom launch an offer for Qualcomm, it's not clear whether Qualcomm would be receptive or whether the deal would pass muster with federal antitrust regulators.
No final decisions have been made and there is no guarantee a deal will go ahead.
Qualcomm shares are now up 12.62% to $61.76. Broadcom's stock also rose on the report, adding $14.13 or 5.45% to $273.63.
- Broadcom is considering making a takeover offer for Qualcomm that would value the chipmaker at more than $100 billion, Bloomberg reported on November 3, citing people familiar with the matter.
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Qualcomm reported a plunge in net earnings for the fourth quarter of its fiscal year, to $168 million, or 11 cents per diluted share, compared to $1.6 billion, or $1.07 per diluted share, in the same period in 2016.
Qualcomm's shares have been trading in the low $50s for much of this year - down about 15 percent because of its fierce legal battle with Apple and hefty fines/lawsuits from anti-monopoly regulators in the U.S., South Korea and Taiwan. As a result, there is talk that the 2018 iPhone and iPad models will feature modem chips made by Intel and MediaTek.
Broadcom, meanwhile, announced it would return its corporate headquarters to the US, in San Jose.
A change of management at Qualcomm might help resolve the dispute with Apple more quickly, and thereby make Qualcomm's licensing and chip businesses more valuable, according to Sanford C. Bernstein & Co. analyst Stacy Rasgon. Apple, in suing Qualcomm, thinks the company is nonetheless overcharging for use industry standard patents, which the law requires be licensed out on fair, reasonable, and non-discriminatory (or "FRAND") terms.
The deliberations come as Qualcomm, based in San Diego, California, tries to close its $47-billion purchase of NXP Semiconductors NV. Broadcom is also a major supplier to numerous same companies for Wi-Fi chips.
Such a deal would cap an ongoing consolidation of the semiconductor industry.