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There are ways to get these deals done without introducing PE though. Look at the recent SABMiller acquisition by AB Inbev (different sector, same thing -- clos

• adventured 9y ago
  That's why I mentioned raising financing via major banks. For a deal like that, JP Morgan, Goldman Sachs, (a dozen major Asian banks) et al. will happily step in and help arrange the debt necessary. Broadcom is relatively cash poor when it comes to a deal this size, and their balance sheet is already a mess with negative $16b in net tangible assets. Annually they're burning nearly the equivalent of a quarter worth of net income on debt interest payments. Given their size and the strong cash & income position of Qualcomm, there's no doubt major banks will be very willing to help despite the weak balance sheet. $50 billion in debt would nearly cost them all their current income. $100 billion would further chew into about 1/3 of Qualcomm's income. It's won't be an easy debt arrangement unless they lean heavily on their bubbly valuation.