Report: Qualcomm Moving Past NXP Acquisition Ahead Of Deadline

Qualcomm is reportedly already looking to move past acquiring NXP Semiconductors, according to sources at CNBC. The publication notes that Qualcomm is going to be moving ahead with share buybacks, as it is not confident that China will approve of the deal before the deadline. The hard deadline that was set between NXP and Qualcomm when the acquisition was announced nearly two years ago, was July 25 at 11:59PM EST, which is in just a few hours. Qualcomm and NXP has gotten approval from the US and the European Union, but has not yet gotten approval from China. Even though neither company is based in China, both do plenty of business there, so they do need regulatory approval from China.

There is still a chance that China's State Administration for Market Regulation could approve the deal before the deadline tonight, Qualcomm doesn't see it as very likely to happen. According to the source, the likelihood of an agreement is very slim. If Qualcomm does walk away from the acquisition, the company is expected to to add billions more to the share repurchasing program that it announced back in May. It has already committed to repurchasing around $10 billion in stock, which hasn't actually begun yet. Share repurchasing is a good thing for shareholders, as it makes the stock more valuable, as there are less shares outstanding that can be bought.

Qualcomm wanted to purchase NXP so that it could diversify its revenue streams a bit. Currently, the majority of its revenue comes from royalties due to its many patents that it owns. The other half or so, comes from processors that are sold to partners. NXP also makes and sells processors, but NXP does more than mobile processors. It is primarily focused on IoT devices with its line of chipsets. Which would help Qualcomm diversify its revenue, and product lineup. But it appears that won't be happening. So it'll be interesting to see what Qualcomm decides to do next.

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Alexander Maxham

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Alex has written for Androidheadlines since 2012 as Editor of the site and traveled the World to many of the biggest Smartphone and Technology events. Alex has a background in Technology and IT and Deep Passion for Everything Android and Google. His specialties lay in Smartphones of all budgets, Accessories, Home Automation and more. Contact him at [email protected]
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