More American Jobs? Broadcom Deal Might Mean the Opposite
- 6 years ago
More American Jobs? Broadcom Deal Might Mean the Opposite
“We’re looking forward to seeing that number grow very substantially, which it is now anticipated to do.”
He added that he was thrilled to see Broadcom’s $20 billion in revenues “come back to our cities, towns and American workers.”
Broadcom’s chief executive, Hock Tan, then took the podium and declared: “Thanks to you, Mr. President, business conditions have steadily improved.” He praised the president’s proposed tax overhaul as a policy
that would “level the global playing field’’ and make a move to the United States more advantageous.
Within 24 hours — for those paying attention — Broadcom’s real motivation emerged: The company was planning to mount a $100 billion
bid for the rival chip maker Qualcomm in what would amount to the largest hostile takeover of a technology company in history.
The reason for Broadcom’s sudden move back to the United States was clear: Given President Trump’s aversion to foreign companies, there was no way
that Broadcom would ever receive regulatory approval for a takeover of one of the crown jewels of Silicon Valley if it were based anywhere but here.
But the result may not be what Mr. Trump is envisioning — a Broadcom takeover of Qualcomm would most
likely cost thousands of jobs, doing the very opposite of what the president said would happen.
And while the sound bite about Broadcom’s bringing its $20 billion in revenues back to the
United States sounds great, it isn’t so clear it will happen immediately — or ever.
“We’re looking forward to seeing that number grow very substantially, which it is now anticipated to do.”
He added that he was thrilled to see Broadcom’s $20 billion in revenues “come back to our cities, towns and American workers.”
Broadcom’s chief executive, Hock Tan, then took the podium and declared: “Thanks to you, Mr. President, business conditions have steadily improved.” He praised the president’s proposed tax overhaul as a policy
that would “level the global playing field’’ and make a move to the United States more advantageous.
Within 24 hours — for those paying attention — Broadcom’s real motivation emerged: The company was planning to mount a $100 billion
bid for the rival chip maker Qualcomm in what would amount to the largest hostile takeover of a technology company in history.
The reason for Broadcom’s sudden move back to the United States was clear: Given President Trump’s aversion to foreign companies, there was no way
that Broadcom would ever receive regulatory approval for a takeover of one of the crown jewels of Silicon Valley if it were based anywhere but here.
But the result may not be what Mr. Trump is envisioning — a Broadcom takeover of Qualcomm would most
likely cost thousands of jobs, doing the very opposite of what the president said would happen.
And while the sound bite about Broadcom’s bringing its $20 billion in revenues back to the
United States sounds great, it isn’t so clear it will happen immediately — or ever.