However, Qualcomm needs to decide if it's open to accept Broadcom's offer. "We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G".
Broadcom can now raise its bid or launch a hostile takeover by enlisting shareholders to its cause.
"Qualcomm's "thanks, but no thanks" response to the unsolicited bid by Broadcom isn't surprising and we would be surprised if at this point, Broadcom didn't move forward with a proxy fight", Loop Capital analyst Betsy Van Hees told Reuters.
Smartphone chipmaker Qualcomm has rejected Broadcom's $103bn takeover offer saying it undervalued the company. The deal would dwarf Dell Inc.'s $67 billion acquisition of EMC in 2015 - then the biggest in the technology industry. But analysts say Broadcom still has some cards to play: It could simply sweeten its bid, of course, or as Bloomberg pointed out, it could wage a proxy battle by bringing its offer directly to Qualcomm shareholders.
"Qualcomm shareholders are likely to hold out for more, but we believe something in the $80-ish range is likely enough to bring majority around", Stacy Rasgon, an analyst at Sanford C. Bernstein wrote in a note published over the weekend.
Tan, who has built Broadcom through a series of transactions that has helped reshape the $300 billion semiconductor industry, has previously been able to pull off deals with friendly approaches.
"This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products", Hock Tan, president and chief executive officer of Broadcom, said in a statement.
Stifel Nicolaus Reaffirms Buy Rating for Amazon.com, Inc
Karp Capital Management Corp acquired a new position in Amazon.com during the first quarter valued at approximately $157,189,000. The e-commerce giant reported $0.52 EPS for the quarter, missing the Zacks' consensus estimate of $1.09 by ($0.57).
Chief executive Steve Mollenkopf added that Qualcomm's achievements to date have offered significant value to stockholders.
Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.
Both companies count Apple among their top customers.
This comes after the FT last week reported that Broadcom's current $70 per share offer was far from anything Qualcomm's board would consider seriously, with the firm viewing the bid as "opportunistic" because of the fact that it's price has recently fallen due to its ongoing legal skirmish with Apple.
"No customer wants to see a supplier have that much power", said Romit Shah, a senior equity analyst at Nomura Instinet.
Information for this article was contributed by Tiffany Hsu of The New York Times.