Qualcomm Inc. last week removed former Chairman and CEO Paul E Jacobs from the Board of Directors over his intention to acquire the company. The chipmaker also announced that he will not be re-elected in its next Board election scheduled to be held on 23 March.
“The Board reached that decision following his notification to the Board that he has decided to explore the possibility of making a proposal to acquire Qualcomm,” the company said in its statement.
Paul Jacobs who is the son of Qualcomm founder Irwin Jacobs wanted to buyout the company after the Broadcom takeover proposal was killed by President Trump. It was reported that Jacobs was in talks with investors including SoftBank for a potential take over of Qualcomm.
However, the company said, there is no certainty that Jacobs would offer a proposal.
“There can be no assurance that Dr. Jacobs can or will make a proposal, but, if he does, the Board will of course evaluate it consistent with its fiduciary duties to shareholders,” the statement added.
Earlier also, it was believed that it was Jacobs, more than any other Director in the Board, who was more interested in getting Qualcomm acquired by Braodcom. It was felt when the company had decided to summarily reject the first offer from Broadcom without citing any reason but Jacobs hinted the proposal as ‘undervalued’. This statement prompted Broadcom to come up with a revised offer with a better valuation.
In the second and revised proposal, Broadcom had also innvited Paul Jacobs to join the Board of Broadcomm post acquisition. All these developments somewere indicated Jacob’s inclination towards selling off Qualcomm.
Post Jacobs removal, Qualcomm Board now consists of 10 Directors and the next Stockholders’ meeting on 23 March will decide on the future course of action for the company as well ass new directors, if any.
After the Broadcom’s proposal to take over Qualcomm was collapsed, the company said it is focused on its own business and for increasing value for its shareholders.
“Following the withdrawal of Broadcom’s takeover proposal, Qualcomm is focused on executing its business plan and maximizing value for shareholders as an independent company,” the statement added.
Qualcomm Board, however, did not miss to thank Jacobs in the statement.
“The Board is grateful to Dr. Jacobs for his decades of service and for the commitment, experience and vision he has brought to that service. The Board thanks him for his many contributions to Qualcomm.”