The Trump administration is having quite the March.
Days removed from initiating tariffs on steel and aluminum, President Trump decided to let himself be heard in the M&A market on Monday evening.
"There is credible evidence that leads me to believe that Broadcom Limited (AVGO) , a limited company organized under the laws of Singapore (Broadcom)...through exercising control of Qualcomm Incorporated (Qualcomm) (QCOM) , a Delaware corporation, might take action that threatens to impair the national security of the United States," a statement from the White House read as Trump has effectively blocked the contentious merger battle between the two tech titans.
Said Broadcom in a statement, "Broadcom is reviewing the Order. Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns." Qualcomm said in a statement it would reconvene its annual shareholder meeting for March 23.
Broadcom is a holding in Action Alerts Plus.
TheStreet's founder Jim Cramer quickly hopped onto Twitter, voicing what many are probably thinking off the news.
"Presidential order to shut down Broadcom bid! WOW! Maybe it will be an earnings story now," Cramer tweeted.
Presidential order to shut down Broadcom's bid! WOW! Maybe it will be an earnings story now...— Jim Cramer (@jimcramer) March 12, 2018
TheStreet's senior tech columnist Eric Jhonsa offers up the following instant reaction:
- This is pretty unprecedented. Editor's note: it's likely to change the deal landscape significantly moving forward.
- Qualcomm won the PR and lobbying war (they're much better/more experienced at it).
- Good chance Broadcom looks for new targets to buy.
This news is so big yours truly decided to serve up some sharp analysis over on Periscope. Watch below. Big winner here: Intel (INTC) .
So much for that Broadcom deal $AVGO $QCOMBack to chips for driverless cars please https://t.co/YxIhiHCRpJ— Brian Sozzi (@BrianSozzi) March 13, 2018