Why Qualcomm Is Ousting One of Its Directors

By Chris Lange Updated Jan 12, 2:20AM EST · Published Mar 17, 9:05AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Why Qualcomm Is Ousting One of Its Directors — © Thinkstock

Qualcomm Inc. (NASDAQ: QCOM) has been fighting to keep itself a standalone public company recently. This means that it has fought off all threats to its solidarity, from both external and internal forces. In a shocking move, Qualcomm’s board of directors is throwing out one of its own for exploring the possibility of taking the company private.

The chipmaker announced on Friday that Paul Jacobs would not be renominated to the board of directors at the annual shareholder meeting on March 23. For those that might not know, Jacobs is a longtime Qualcomm executive, having previously served as CEO and executive chair of the board.

However, Qualcomm said that the decision was made after Jacobs informed the board that he was exploring the possibility of taking the $88 billion company private. This is not the first time that Jacobs has come out in favor of taking the company private. In the past he had even approached multiple investors, including the likes of Japan’s SoftBank, looking for funds for an acquisition.

[nativounit]

Jacobs believes that this is in the best interest of the company, that Qualcomm will be more apt to pursue real opportunities as a private company. He said in a statement:

These opportunities are challenging as a standalone public company, and there are clear merits to exploring a path to take the company private in order to maximize the company’s long-term performance, deliver superior value to all stockholders, and bolster a critical contributor to American technology.

Currently, Qualcomm has a market cap of roughly $90 billion. And so far in 2018, its stock has underperformed the broad markets, with its shares down 5%, as well as up 4% in the past 52 weeks.

Shares of Qualcomm closed out the week at $60.62, with a consensus analyst price target of $71.03 and a 52-week trading range of $48.92 to $69.28.

[recirclink id=450280]

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.