Qualcomm to Pay $975 Million Fine

Earlier today, I noted that Qualcomm ($QCOM) was nearing a final deal with the Chinese government to pay a massive fine to settle charges of “anti-competitive” practices. The stock opened at $68 this morning, nearly hit $69, then slowly slid back to $67 as the day wore on. Still, the stock gained a little over 1% on the day.

After the close, Qualcomm announced that it has indeed reached a deal with China. The price tag is $975 million. That works out to about 60 cents per share.

Qualcomm Inc said on Monday it agreed to pay China a fine of $975 million, ending a 14-month government investigation into anti-competitive practices.

The deal also sees chip-maker Qualcomm lower its royalty rates on patents used in China, the company said in a statement.

Discussions in Beijing over one of the most contentious cases under China’s 2008 anti-monopoly law had intensified in recent weeks, culminating in meetings between Qualcomm senior executives and National Development and Reform Commission (NDRC) officials on Friday.

Investors seem relieved. I know I am. The stock is back above $68 in the after-hours market.

Posted by on February 9th, 2015 at 4:52 pm


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