Qualcomm's Board of Directors greenlit a new $10 billion stock repurchase program meant to replace the $15 billion one launched in early 2015 which is now nearly depleted, having already fulfilled over 90-percent of its goal. The move comes amid uncertainty about the company's proposed NXP acquisition that's facing opposition from China whose antitrust regulator doesn't appear to be satisfied with the concessions Qualcomm already offered to regulators in Europe and the United States. The San Diego, California-based chipmaker repeatedly assured investors it will generate value for them through major stock repurchases if it isn't able to complete the NXP takeover, and while the newly announced repurchase program is primarily meant to continue the old one, its timing is indicative of Qualcomm wanting to remind investors of its commitment to continue growing moving forward.
Qualcomm says it already returned some $60 billion to shareholders over the last fifteen years since its capital returns program first started, having so far encompassed both cash dividends and repurchases. No actual details of the new plan have been provided as the technology giant hasn't clarified the manner in which it intends to repurchase its shares and is keeping all of its options open. The firm's inability to conclude the NXP deal in a timely manner is believed to be what partially prompted Broadcom to attempt a hostile takeover of the chipmaker, with many Qualcomm investors being displeased with how prolonged the entire affair ended up being, having signaled they're prepared to vote out the firm's existing board in favor of Broadcom's own candidates.
While President Trump put an end to Broadcom's advances after being advised to do so by one of Treasury Department's national security panels, Qualcomm is still under pressure to wrap up the $44 billion tie-up that promises to add billions of dollars to its annual revenue. The firm's ex-chairman Paul Jacobs was recently said to have been exploring options for taking the company private but has yet to agree to such a move with an institutional investor, especially one that doesn't have existing ties to Qualcomm but also wouldn't raise national security concerns in Washington.