"Hock Tan gets his man," TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment Friday regarding Broadcom (AVGO - Get Report) CEO Hock Tan, in reference to the company's attempted buyout of Qualcomm (QCOM - Get Report) . He says Tan will eventually get his wish.
Broadcom previously made a $70 per share offer to acquire Qualcomm, valuing the latter at roughly $103 billion. Qualcomm rejected the offer, saying it wasn't enough and even if it was, the tie-up would likely face regulatory hurdles.
Interestingly enough, both companies face other M&A situations. On Friday morning, Broadcom closed its $5.5 billion acquisition of Brocade. In Qualcomm's case, the company's much larger $47 billion deal to acquire NXP Semiconductors (NXPI - Get Report) could gain regulatory approval from the European Union this year.
The only issue for Qualcomm? Since coming to terms on a $110 per share buyout of NXP back in October 2016, many feel that NXP Semi is worth more now. Some have said $125 should be the new deal, while others have talked about a price as high as $140 per share, said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
As a result, NXP Semi shares have crept above the $110 deal price, going as high as $118 and currently near $115.
- Broadcom's Stock Could Easily Skyrocket Almost 30% From Here
- Why Broadcom's Offer for Qualcomm Doesn't Include a Premium for NXP
- Investors Have Good Reasons for Betting a Broadcom-Qualcomm Deal Will Happen
In any regard, if Broadcom has to pay more to get Qualcomm, so be it. Recently, analysts were making the case that a deal of $80 per share or more may be needed to secure Qualcomm, which would value the latter at roughly $117 billion.
"Hock Tan gets his man," Cramer reiterated, meaning that Broadcom will likely find a way to pull it off.
What does Broadcom actually do?
More of What's Trending on TheStreet: