The California-based company offered $70 per share for Qualcomm, representing a 28% premium from Thursday’s closing price before The Wall Street Journal reported that an approach might happen.

The deal carries a value of roughly $103 billion and includes about $25 billion of debt.

A year ago, Qualcomm was riding high after unveiling the chip industry’s largest-ever acquisition: a $39 billion proposed acquisitionof NXP Semiconductors NXPI 0.87% NV.

But Qualcomm today is reeling from hits by regulators, competitors and customers including Apple Inc. Qualcomm’s profit in the fiscal year that ended Sept. 24 plummeted 57%, and its share price dropped 18% in the 12 months through Thursday’s close compared with a 58% rise in the PHLX Semiconductor Sector Index, before news of Broadcom’s interest sent Qualcomm up nearly 13% on Friday.

Qualcomm is the market leader in chips that manage wireless communications in smartphones and owns patents on technology essential to implementing cellular-communications standards, which allows it to collect a royalty on nearly every smartphone sold world-wide.

“The deterioration that it has brought is what potentially opens up the opportunity for Broadcom.”

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