The hostile takeover of Qualcomm Inc., the Singapore semiconductor company Broadcom (which recently moved its headquarters to the United States), was vetoed by US President Trump, after which Broadcom’s share price fell sharply. MV2201

According to the latest news from foreign media, it may be to make up for the dissatisfaction of shareholders. Recently, Broadcom announced a $12 billion stock repurchase program. The stock price rose sharply on Thursday.

Tencent Technology noticed that after President Trump banned Broadcom’s acquisition of Qualcomm in March, Broadcom’s share price declined and investors’ wealth declined.

According to a report by CNBC, a US technology news website, Broadcom announced on Thursday that it has received regulatory approval to buy back US$12 billion worth of common stock. The repurchase program will take effect immediately and will be valid until November 3 this year.

In a statement, Broadcom’s Chief Financial Officer Tom Krause, Broadcom's free cash flow is not only used for external acquisitions and mergers, but also used to reward shareholders. Broadcom will implement past policies and free cash flow for the past 12 months. Half of the dividends are returned to shareholders. XC17V02PC20I

This news greatly stimulated Broadcom's share price. Broadcom's stock price fell by 0.37% during the intraday trading session. In the after-hours trading period, Broadcom's share price rose sharply by 4.48%. The latest stock trading price is shown at 250 US dollars.

In the European and American capital markets, one of the important ways for listed companies to return shareholders is to buy back shares. The repurchase operation resulted in a reduction in the number of tradable shares. Changes in the supply and demand relationship naturally led to the rise in the price of shares and the appreciation of shareholders’ wealth.

Apple also often uses stock repurchases to reward shareholders. In the past two or three years, Apple has repurchased more than $200 billion worth of stocks. After the first quarter financial report was released in early May, Apple is expected to announce a new round of stock repurchase program, which will return part of the huge amount of overseas cash transferred back to the United States to shareholders.

The failure to acquire Qualcomm is a major setback in the history of Broadcom's development. However, before Broadcom's registered headquarters was in Singapore, it was a foreign company that merged and acquired US companies. In the future, it will be unknown whether Broadcom, which has become a real American company, will once again acquire Qualcomm.

In the global semiconductor market, Broadcom’s influence, visibility, and industry status are all inferior to those of Qualcomm. Previous hostile acquisitions were “small fish and eat big fish” and ultimately failed.

Broadcom’s long-term real identity is Singaporean Anwara High, which first came from Hewlett-Packard’s semiconductor business and later carried out countless M&A deals and acquired Broadcom, a small-scale semiconductor company in the United States, and borrowed directly from each other’s. first name. This move led many people to think that Bo is a US company.

Bertone is headed by Malaysian Chinese Chen Fuyang. He is not a semiconductor technology person but is a Wall Street financial business person. He is a well-known “M&A deal” in the semiconductor industry, behind which is the support of global financial giants.

The industry generally believes that Broadcom will continue to acquire other semiconductor companies in the future. Some analysts even believe that Qualcomm’s competitor, Taiwan’s MediaTek, will also be one of the M&A targets.