San Diego Contemplates A Region Without Qualcomm
Executives from rival chipmakers Qualcomm and Broadcom will have their first face-to-face meeting Wednesday to discuss Broadcom's $121 billion takeover bid, just days after Qualcomm rejected the offer.
Broadcom had initially offered $105 billion and CEO Hock Tan said $121 billion is its final offer. On Tuesday Tan said Broadcom was no longer seeking all 11 Qualcomm board seats at a March 6 shareholder meeting. The company now is seeking six seats.
So far, Qualcomm has dismissed all overtures. But business leaders and San Diegans who depend on Qualcomm's philanthropy are now considering what would happen if one of the region's largest employers is bought out. Qualcomm could see cuts of up to 10 percent under Broadcom ownership, and each Qualcomm job supports more than two others based on indirect economic effects, according to The New York Times economics reporter Conor Dougherty.
"People here are so accustomed to everything that comes with being Qualcomm’s home that they’re having a hard time imagining the city without that distinction," he wrote. "But suddenly that’s the prospect they are confronting."
Even though the health of small businesses have a greater impact on a city's economy compared to larger ones, Dougherty reported Qualcomm and other local tech giants have spawned dozens of successor companies.
Doughterty joins KPBS Midday Edition on Wednesday with more on what the loss of Qualcomm could mean to San Diego.