Qualcomm on Friday confirmed that former CEO Paul Jacobs is exploring the possibility of taking the company private, and announced he would not be renominated to the board.
“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 a statement after financial markets closed in New York.
The company said the board would be reduced to 10 directors effective with the rescheduled annual meeting on March 23.
“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 company said. “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.”
Jacobs said he was considering a buyout offer because Qualcomm faces challenges as a public company.
“There are real opportunities to accelerate Qualcomm’s innovation success and strengthen its position in the global marketplace. These opportunities are challenging as a standalone public company,” he said.
“I am glad the board is willing to evaluate such a proposal, consistent with its fiduciary duties to shareholders. It is unfortunate and disappointing they are attempting to remove me from the board at this time,” he added.
The possibility of a buyout offer was first reported late Thursday by the Financial Times in London. A deal to take the wireless pioneer private would require around $90 billion, and perhaps saddle the company with debt.
Qualcomm’s stock was trading over $61 per share after hours, up nearly 1 percent.
