Qualcomm said on Thursday that it has rejected a $121 billion takeover offer from rival chipmaker Broadcom, but did say that it would be open to further discussions.
Why it matters: This merger would create major competition for Intel and Samsung, by creating a third semiconductor company with double-digit market share.
Broadcom, backed by private equity firm Silver Lake, had sweetened its bid earlier this week, but with the caveat that Qualcomm must either complete its own $47 billion purchase of NXP Semiconductor (at the agreed-upon price) or terminate the deal.
Per a statement from Qualcomm's board to Broadcom CEO Hock Tan:
Update: Broadcom on Thursday night said it welcomes discussions and said that it would agree to pay an $8 billion breakup fee if Qualcomm approves a deal and regulators block it.
