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Economy

Broadcom Looks To Acquire Qualcomm In Takeover Bid

The Qualcomm headquarters building in San Diego, Nov. 2, 2011.
Associated Press
The Qualcomm headquarters building in San Diego, Nov. 2, 2011.

San Diego-based Qualcomm Inc. is the target of an unsolicited takeover bid by Broadcom Ltd., a semiconductor company based in Singapore, according to multiple media reports Friday.

An offer of $70 a share in cash and stock for the maker of technology for mobile devices could be coming in a matter of days, perhaps as soon as this weekend, the reports said.

Like Qualcomm, Broadcom is a major supplier of parts for Apple products.

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Qualcomm and Apple have been embroiled in a dispute over royalties that has landed the two corporations in court.

RELATED: Qualcomm Net Income Down Since Last Fiscal Year

Both firms have been in the news the last few days.

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. For the full fiscal year, net income was $2.47 billion, or $1.65 per diluted share, compared to $5.7 billion, or $3.81 per diluted share, last year.

Broadcom, meanwhile, announced it would return its corporate headquarters to the U.S., in San Jose.

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RELATED: Qualcomm Legal Feud With Apple Has First Major Day In Court

The impact of a takeover on San Diego was not immediately clear, but it could be tremendous. Qualcomm is one of the few major corporations with a global reach to be headquartered in a city known mainly for tourism, and smaller defense and life sciences firms.

The company is one of the region's largest private employers, and the family of co-founder Irwin Jacobs is one of the area's most generous philanthropists.