Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Photo: VCG via Getty Images
As expected, Qualcomm plans to drop its long-running bid to buy rival NXP Semiconductors, instead spending up to $30 billion to buy back its own stock. The company announced the moves alongside a better-than-expected quarterly earnings report.
The bottom line: The deal, announced back in 2016, had been stalled awaiting Chinese regulatory approval. Qualcomm's latest tender offer had been slated to expire later this evening.
What they're saying: “We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments," Qualcomm CEO Steve Mollenkopf said in a statement. "Upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders.”
The deal's end means Qualcomm will owe a $2 billion breakup fee to NXP. CNBC reported earlier Wednesday that Qualcomm was likely to drop the NXP bid.
By the numbers: On the earnings front, Qualcomm reported per-share earnings of 82 cents, on revenue of $5.6 billion. Analysts were expecting earnings of 71 cents per share, on revenue of $5.2 billion, according to Zacks.
What's next: Even with a buyback, Qualcomm will be under pressure to show that it can grow its chip business significantly beyond its cell phone roots, while ideally also maintaining its licensing business.
Update: On its conference call, Qualcomm said it expects that Apple will exclusively use rivals' modem chips on the next iPhone as its licensing dispute with the company continues. Apple has used a mix of Intel and Qualcomm modems on past iPhones. (Qualcomm will still supply some modem chips for older iPhone models.)