The Jacobs’ family semiconductor business, otherwise known as Qualcomm, has been battered by market forces in recent years and is now trying to fight a hostile takeover bid by Broadcom. While it remains to be seen whether Qualcomm will survive as an independent business, it seems that the founder’s scion will no longer have a hand in steering its fate.
Today, Qualcomm announced that Dr. Paul Jacobs had been removed as executive chairman of the company his father co-founded in 1985, though he will remain on the board. The company hinted that the move was in part an effort ensure that its handling of Broadcom’s unwanted overtures is above reproach.
The board named Jeffrey W. Henderson, to serve as an independent and non-executive chair. What remains to be seen is how this may or may not shift Qualcomm’s posture toward Broadcom’s offer.
“The Board is committed to the principles of strong corporate governance and believes that having an independent director as Chairman at this important juncture in Qualcomm’s history is in the best interest of the Company and our stockholders,” said Tom Horton, Qualcomm’s lead director, in a statement. “We are focused on maximizing stockholder value, and will consider all options to achieve that objective, as we seek to move Qualcomm forward by closing the acquisition of NXP, strengthening our licensing business, and capitalizing on the enormous 5G opportunity before us.”
More to come.
