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March 19, 2018
Qualcomm has announced it will not re-nominate Paul Jacobs to the Board of Directors after the executive made the decision to explore the possibility of making a proposal to acquire Qualcomm.
Jacobs has been working at the chipmaker since 1990, holding the position of CEO between 2005 and 2014, and also serving as Chairman of the Board. But it seems ambitions of trying to take the company private where too much for the other 10 board members, who have said in a statement they would consider his proposal should it come to fruition.
“These opportunities are challenging as a standalone public company, and there are clear merits to exploring a path to take the company private in order to maximize the company’s long-term performance, deliver superior value to all stockholders, and bolster a critical contributor to American technology,” Jacobs said in a statement.
It seems Qualcomm can’t keep itself out of the news right now, as President Trump might be called upon again to beat back the ambitions of foreign investors. According to the FT, Jacobs has been in discussions with several global investors, including the Softbank Vision Fund. Considering Softbank’s apparent intentions to diversify into the technology world this would seem like a fair rumour to believe, though sources close to the situation have pointed to a personal relationship between Jacobs and Softbank CEO Masayoshi Son as a means to facilitate the deal.
Perhaps an interesting twist to the story will be the foundations of the Softbank Vision Fund. While walking the road to raise $100 billion of committed capital, the wannabe investors knocked on the Qualcomm doors, with the chipmaker more than willing to contribute. Qualcomm dollars underwriting its own buy-out might cause a few complications.
This statement of intent is by no-means a guarantee Jacobs will be able to raise interest or the funds to forge an assault on the chipmaker. And you thought the Qualcomm soap opera had reached the final chapter.
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