Qualcomm sees a shuffle; Intel eyes Broadcom

Longtime Qualcomm Inc. executive Paul Jacobs is taking a reduced role on the company’s board of directors — a move likely aimed at appeasing angry shareholders as the San Diego cellular giant tries to fend off a hostile takeover from Broadcom Ltd.

Meanwhile, rival chipmaker Intel Corp. — not eager to compete with the combined might of Broadcom and Qualcomm — is thinking about bidding to acquire Broadcom, the Wall Street Journal reported Friday, citing unnamed sources.

Intel hopes Broadcom will fail in its effort to take over Qualcomm, but if Broadcom looks likely to succeed, Intel might try to buy Broadcom, the Journal said. That tie-up would be huge: Santa Clara, Calif.-based Intel’s market value is $244 billion, and Broadcom’s is $104 billion.

Qualcomm, pushing against Broadcom’s bid, announced a boardroom shuff le Friday. It said Jacobs — son of Qualcomm co-founder Irwin Jacobs and the company’s chief executive from 2005 to 2014 — will no longer serve as executive chairman of the company or chairman of its board of directors. He will remain a member of the board.

Jeffrey Henderson, who joined Qualcomm’s board in 2016, will become chairman. The executive chairman post will be eliminated.

Broadcom is trying to gain control of Qualcomm’s board as part of a $117-billion hostile takeover bid. It has made Qualcomm’s stock performance over the last four years the centerpiece of its campaign that it would do a better job of managing the company.

The argument appears to be resonating with Qualcomm shareholders. Bloomberg has reported that Jacobs and Chief Executive Steve Mollenkopf were among the lowest vote-getters in early stockholder balloting for the company’s board. The six Broadcom-nominated candidates were leading the vote count for Qualcomm’s 11-member board. About half of shareholders have cast ballots.