Home / Tech News / Featured Tech News / Broadcom is moving back to the US, opening the door for future takeovers

Broadcom is moving back to the US, opening the door for future takeovers

Earlier this month we saw Broadcom's attempts to acquire Qualcomm foiled by the US committee for foreign investment (CFIUS) and President Trump. The deal was labeled as a potential risk to national security, but it looks like things might not be over yet. In April, Broadcom will be moving its base of operations over to the US, which would skirt around the initial block.

Back in 2016 when Broadcom merged with Avago, the company moved its ‘domicile' of incorporation to Singapore. Because Broadcom is now a foreign company, CFIUS stood in the way of the company's attempts to acquire Qualcomm. To get around this and potentially be able to buy up more US companies in the future, Broadcom will be incorporating its business in Delaware.

The proposal to move Broadcom back to the US was approved by shareholders back in November. The date that redomiciliation is expected to complete is the 4th of April.

There is currently no confirmation that Broadcom will attempt to buy Qualcomm again once this process is complete. However, it does mean that it would be able to dodge around CFIUS's jurisdiction and open the door up for Broadcom to potentially buy out other US companies.

KitGuru Says: Broadcom is a big company with a lot of money to throw around. By reincorporating as a US company, the door will be open for it to start splashing on US companies, though there will still be regulatory hurdles to overcome in some cases. 

Become a Patron!

Check Also

EA says its three-game partnership with Marvel is ‘still strong’ after Black Panther cancellation

Earlier this week, EA revealed that it has closed down one of its single-player studios, Cliffhanger Games, and cancelled its Black Panther title. This game was one of three planned Marvel game projects and despite its cancellation, EA says there will still be three games on the way.

We've noticed that you are using an ad blocker.

Thank you for visiting KitGuru. Our news and reviews teams work hard to bring you the latest stories and finest, in-depth analysis.

We want to be as informative as possible – and to help our readers make the best buying decisions. The mechanism we use to run our business and pay some of the best journalists in the world, is advertising.

If you want to support KitGuru, then please add www.kitguru.net to your ad blocking whitelist or disable your adblocking software. It really makes a difference and allows us to continue creating the kind of content you really want to read.

It is important you know that we don’t run pop ups, pop unders, audio ads, code tracking ads or anything else that would interfere with the KitGuru experience. Adblockers can actually block some of our free content, such as galleries!