Qualcomm stock jumps 13% on Broadcom acquisition rumors, biggest one-day spike since 2008

Bloomberg is reporting that Singapore’s Broadcom is exploring an acquisition of the San Diego-based mobile chip giant Qualcomm.

Here are a few things to know:

• Qualcomm is involved in a deepening battle with Apple over patent licensing fees. A loss in the battle could devalue the licensing part of Qualcomm’s business. A recent report said Apple will no longer use Qualcomm modem chips in iPhones starting next year. If the report is true, it means the gloves are off between the two companies. Fast Company sources believed Apple’s move away from the Qualcomm chips would come in 2019.
• Broadcom just yesterday said it would move its headquarters to the United States. Trump took credit, citing a favorable business environment created by the GOP’s proposed tax reform.

• Qualcomm stock rose more than 13% on the news Friday (its biggest intraday jump since 2008), valuing the company at $92 billion. Broadcom stock fell slightly.
• The Bloomberg report says the deal is in the early talking stage and may not happen at all.

Broadcom and Qualcomm had no comment.