Paul Jacobs, who was recently ousted as Qualcomm’s chairman (pictured), is making progress in securing funding to launch a takeover bid for the company and could make an offer within a few months, reported Bloomberg.
Sources said Jacobs received commitments following discussions about the move with strategic investors, sovereign wealth funds and wealthy individuals, adding to the potential of striking a deal. A source added the man in question believes there is a better than 50 per cent chance of completing a takeover.
Jacobs who served as Qualcomm CEO for nine years from 2005 to 2014, is the son of the company’s co-founder Irwin Jacobs. He then served as the company’s executive chairman, but was forced to stand down last month as part of a board revamp.
While he retained a board seat, Jacobs was then pushed out completely after revealing his intentions to pursue a bid for the company.
The Wall Street Journal reported that several directors tried to talk him out of making the move, but his persistence led the board to remove him from office.
Jacobs’ interest in pursuing a takeover surfaced slowly after US President Donald Trump blocked a proposed takeover bid of Qualcomm by Broadcom.
Financial Times reported Jacobs is looking to capitalise on investors’ dissatisfaction with the way the Broadcom deal was handled. It was also reported that he would look to offer a premium similar to what Broadcom was willing to pay to acquire Qualcomm.
Currently, Jacobs owns less than 0.5 per cent of Qualcomm, Bloomberg reported.