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Report: Qualcomm to give up on NXP, launch stock buyback

Qualcomm CEO Steve Mollenkopf.
Qualcomm CEO Steve Mollenkopf. Photo: Qualcomm

Qualcomm is likely to announce later today it is dropping its stalled plan to acquire NXP Semiconductors and instead launch a stock buyback, CNBC reported.

Why it matters: The deal's end was expected as Qualcomm's bid has been caught up in US-China politics with no end in sight. Qualcomm's current offer expires just before midnight (Eastern Time) tonight and Qualcomm reports earnings later today.

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Qualcomm declined to comment ahead of its earnings report.

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.

History Lesson: The deal was announced back in October 2016 and the tender offer has been extended multiple times as the companies have worked, unsuccessfully, to get approval from Chinese regulators.

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