What to Take from What Trump Just Did to Broadcom-Qualcomm Deal

President Trump last night took Broadcom out back and slaughtered its $117 billion pursuit of Qualcomm, in the name of national security.

For capital markets, this is unprecedented. A deal that didn't even exist has been blocked by a U.S. president, who also apparently has the power to determine who can and can't stand for election to a private-sector company's board of directors. And all of it was enabled by a regulatory body focused on foreign acquisitions of U.S. companies, even though the acquirer was scheduled to stop being "foreign" in just a few weeks.

For Qualcomm, this sweet relief is only temporary. Its stock had never gotten close to Broadcom's offer price and plenty of shareholders wanted to replace the entire board. And it still hasn't been able to complete its own deal with NXP Semiconductors, nor settle its legal battles with Apple.

For Intel, this is opportunity. It could just rest easy, or could make a play for either Broadcom or Qualcomm. The former makes more strategic sense — and likely would create fewer anti-trust headaches — but it might not be able to resist the siren song of the latter's willing shareholders.

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