Technology

Broadcom Ltd (NASDAQ:AVGO) and Qualcomm Inc (NASDAQ:QCOM) shares close higher following merger rumors

Broadcom Ltd (NASDAQ:AVGO) shares hit a new 52-week high of $278.00 on Friday following multiple reports that the company is looking forward to buy Qualcomm Inc (NASDAQ:QCOM). The San Jose, California-based communications chipmaker may publicly reveal a bid for QCOM before Monday, according to a recently published report by Reuters citing sources close to the matter.

In case the deal goes through, the new company would be worth nearly $200-billion, combining two of the biggest wireless communications chip makers for smartphones.

A bid in a range of $70 per share to $80 per share is expected from Broadcom, though Qualcomm is not sure about exact offer Broadcom will make and how it will respond to this offer, according to the report.

The two companies haven’t responded to the reports so far.

Broadcom (AVGO) shares jumped 5.45 percent to $273.63 in the last trading session. AVGO shares remained mostly bullish this year, as the stock rose nearly 55 percent year-to-date. The 52-week range of the stock is $160.62-$278.00. The company’s market cap is $111.64 billion and P/E ratio of 224.81.

On the other hand, Qualcomm (QCOM) shares soared 12.71 percent on Friday. The stock is up nearly 2 percent in the after-hours trading session. QCOM share price stayed mostly flat this year. The stock fell more than 5 percent so far this year. The company’s market cap is $91.12 billion and P/E ratio of 37.38.

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