Please ensure Javascript is enabled for purposes of website accessibility

Is Qualcomm Getting Any Closer to Owning NXP Semiconductors?

By Anders Bylund - Oct 20, 2017 at 8:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Qualcomm scraped together a larger cohort of tendered NXP shares in October, but it wasn't a game-changing victory.

It's time to take a look at Qualcomm's (QCOM -3.30%) tender offer for all shares of NXP Semiconductors (NXPI -1.31%). The number of shares committed to Qualcomm's $110 all-cash offer per share peaked in March before commencing a long line of steady declines.

Did that story change at all in October? Let's have a look.

By the numbers

When NXP shareholders commit their stubs to Qualcomm's offer, the shares may be withdrawn at any time. That was a popular option this summer, but Qualcomm is finally reporting an uptick in the tendered share counts:

Offer Update

NXP Shares Tendered

Percentage of Shares Tendered


12.3 million



10.9 million



23.5 million



25.6 million


June 28

42.2 million


June 1

47.7 million



50.3 million



54.8 million



58.0 million



49.6 million


Data Source: Qualcomm.

This wasn't exactly a wholesale turnaround of the NXP buyout process, but any improvement is a welcome trend change at this point.

Gloved hand holding up a magnifying glass in front of an empty processor socket.

Qualcomm is still looking for more NXP shares. Image source: Getty Images.

What's new?

Qualcomm's habit of sharing additional buyout news in these share-count updates stopped with the July filing, and this document is no different. The only additional information here would be the expiration date for this particular tender-offer update, scheduled for the close of business on November 17. The company will issue another extension the next day, unless the deal has been completed or canceled at that point.

NXP and Qualcomm investors alike are waiting for news on the paused deal process in Europe, and this filing provided nothing new. Many NXP owners, led by activist investor firm Elliot Management, are holding on to their NXP shares in the hope of a richer price tag.

Reuters recently reported that Qualcomm has presented a new deal package to the European Commission, including a few concessions addressing the regulator's concerns. In particular, NXP may have to sell off its portfolio of standards-related patents for near-field communications (NFC) before getting the go-ahead.

Once the crown jewel of NXP's product portfolio, NFC sales didn't even merit a mention in the company's latest earnings report. This concession would not be much of a burden for NXP and Qualcomm, since the Dutch chipmaker has moved on to refocus on automotive computing and embedded systems, instead.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NXP Semiconductors N.V. Stock Quote
NXP Semiconductors N.V.
$146.09 (-1.31%) $-1.94
QUALCOMM Incorporated Stock Quote
QUALCOMM Incorporated
$123.53 (-3.30%) $-4.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.