Qualcomm shares were up 3.3% in premarket trading, indicated to open at $63.85. Shares closed at $61.81 on Friday after gaining 12.71% on reports that Broadcom was readying an offer.
CNBC reported Sunday that Broadcom is preparing a $70 a share bid for the company. The unsolicited $103 billion would be 75% funded by cash. The reported price is a 27% premium to Qualcomm's Nov. 2 close.
The stunning takeover comes as Qualcomm is trying to close a $47 billion deal to buy NXP Semiconductors NV NXPI.
Broadcom shares closed at $273.63 on Friday, after gaining 5.45%.
Chances are that Broadcom is motivated to make such a bold move not only by the top and bottom-line benefits a deal could deliver -- and they are quite substantial -- but also by a recognition that time might be of the essence for such a bid. Both because of where Broadcom's shares stand following a 50%-plus 2017 run-up, and where Qualcomm's stand as worries about both the NXP deal's closing and its patent-licensing disputes with Apple Inc. (AAPL - Get Report) and others scare off risk-averse investors.
A Broadcom-Qualcomm merger would create a mobile chip colossus. Qualcomm is by far the world's largest supplier of 3G/4G modems and system-on-chips that pair a modem with an app processor, and also sells a number of complementary parts. Broadcom is the top supplier Wi-Fi/Bluetooth combo chips for mobile devices, and is also a major supplier of RF chips and modules for high-end phones. It also supplies mobile OEMs with touchscreen controllers, NFC chips and -- in the case of the iPhone 8 and X -- wireless charging chips.
Eric Jhonsa contributed to this report.
More of What's Trending on TheStreet: