Qualcomm surely worth more than $70 a share

Broadcom offer passed up, investors may force company to settle for $80

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San Diego-based telecom giant Qualcomm will not take the $70 per share offer of Broadcom Ltd., offered last week. However, large institutional investors may want Qualcomm to accept $80, according to TheStreet.com

The total bid, for more than $100 billion, has shaken up Wall Street for its size. Qualcomm, beset by lawsuits and troubles with its big customer, Apple, has suffered a falling stock this year. However, since the bid was made, the stock has been rising and is going up again today.

Since Qualcomm is one of San Diego's largest employers, the possibility of a change of ownership of the company has city leaders concerned about local employment.

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It is worth considering whether San Diego wouldn't be better off without Qualcomm, at least without the Jacobs family at their helm, given how Irwin has devoted his resources to ruining Balboa Park (buying off the local Dems to let Faulconer's win cement support for his plan), and how Jeff threw his weight around to destroy Seaport Village.

I'm in agreement with you about the Jacobs family and the political meddling. A change of corporate status of the local Qualcomm operations would not guarantee an end to that family and its buying and selling of politicians. In fact, it might make it worse in that none of them would be "distracted" with the running of the corporation. I would expect the clan to continue to live here and keep spending their money to buy influence.

Visduh: The Jacobs family has the right to enter politics. The senior Jacobs has been a very generous philanthropist. San Diego needs Qualcomm headquartered in San Diego. Best, Don Bauder

Cassander: San Diego would be much worse off without Qualcomm headquartered here and without the Jacobs family. Best, Don Bauder

The question is if Broadcomm is willing to raise the ante. Most of these takeover proposals of this scale and in this industry are just opening gambits. (Sorry for the poker and chess metaphors.) I'd suspect that much more negotiating/fighting will occur before this is ended. It is interesting to speculate what the stock would be trading for if there had not been the Apple dispute and the fines levied overseas.

Visduh: Yes. The question is whether Broadcom will up he ante. Institutional investors (hedge funds, private equity operations) will try to force Qualcomm to quit fighting if the price gets high enough. Those institutional investors care about nothing but money. I always hope they lose. Best, Don Bauder

Oh man, I agree with you Visduh! The Jacob’s wealth is established and immense. The sale of Qualcomm will only make them wealthier and seeking other avenues to explore with their new found leisure. The clan will get more involved in local politics and land development affairs.

Sure they give money to the symphony, arts, universities and other causes, but that does not make them saints. They also mitigate their good deeds with sticking their noses and using their power to push agendas which are not in the public’s best interest. They ache to leave a social legacy but their projects are extremely unpopular.

In my opinion, they left an opportunity to “make America great again” by being one of the most exploitative and ambitious supporters of foreign labor on American soil. In their greed, they took as many H-1B visa candidates as they could, rather than pay the wages of American engineers.

Qualcomm is the prey and I predict the predator will prevail. I have no feelings either way. But I don’t expect this to be a boon for San Diego, it will most likely be a satellite campus until all the operations are moved and resettled. Then the only large private employer in the “Fortune 500” rank will be Sempra Energy (and their little Tasmanian Devil; SDG&E). So sad that San Diego will be left with just one big elephant and such a nasty, greedy, lying, pathetic one at that.

Ponzi: Yes, Qualcomm abused H-1B to keep engineering salaries inordinately low and their top management inordinately rich. But I forgive them of that if the cost is losing the company. Best, Don Bauder

Don't be shy, Ponzi, tell us how you really feel!

For my part, I'm conflicted. Jacobs has made thoughtful investments in our city, and some I disagree with. I'm deeply involved in Balboa Park and I like the proposed changes. As it is, it's just a parade of cars creeping along and uglifying the place. Acres of parked cars contribute nothing to the Park experience. Hide them underground and replace those lots with trees and picnic tables.

The H-1B debacle was shameful. Forcing fired workers to train their foreign replacements is not only insulting, it demoralizes the entire operation and can lead to lost productivity and even sabotage by employees.

The troubling thing is that in our town Jacob's money is too influential. Orange county & LA have so many big money manipulators that things balance out somewhat. Here we have the Lincoln club and Jacobs, and not enough variety of powerful opinions.

swell: The Jacobs family does a good job of balancing off the greed-based philosophy of the Lincoln Club. Best, Don Bauder

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