Although a final deal would face intense regulatory scrutiny, finance experts are weighing in on the $130 billion effort to buy out Qualcomm.
Broadcom Limited, a San Jose-based company, has made the unsolicited bid, offering $70 a share in cash and stock.
Qualcomm is one of San Diego's top five employers--15,000 people work for the company.
"I think overall, the impact would be negative because we would probably lose more than we would gain," said Lynn Reaser, chief economist at Point Loma Nazarene College.
Reaser said the top concern is the potential for job loss, but there’s plenty more that San Diego would potentially stand to lose.
"The negatives would be those losses of jobs, high paying jobs, wages, supplier contracts and non-profit donations," Said Reaser.
For now, finance experts say the offer price undervalues Qualcomm, especially given potential future earnings as the company ventures into 5G technology.
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There are also are ongoing legal battles to consider, most recently Qualcomm's legal fight with Apple over licensing fees.
Qualcomm would not comment other than a statement released on its website:
"The Qualcomm Board of Directors, in consultation with its financial and legal advisors, will assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders."
Meanwhile, Bob Gellman with the accounting consulting firm CBIZ, raised another point of scrutiny. Broadcom is a Singapore-based company, though it moved its headquarters to San Jose.
He said an acquisition by an offshore company will raise questions about the impact on national security.
"And we're saying that this Singapore-based company is very interested in buying this U.S. company with all this U.S. technology in the time when we’re all concerned about our security,” said Gellman.
He sees the acquisition as a long shot.
"I would say it's not going to happen. There's a lot of headwind here. And if I'm a Qualcomm person and I'm a true believer in Qualcomm opportunity, I'm gonna say 'Why do we need them? They need us and they're trying to get us on the cheap,'" said Gellman.
