Broadcom has offered Qualcomm over $100 billion dollars in a hostile deal proposal. Michael Simon, Staff Writer for PC World, joins Cheddar to discuss why Qualcomm may resist the deal. He says based on the chipmaker's business model, it may be worth more than the $100 billion offer. However, Qualcomm is in a lot of hot water legally, with a high-profile lawsuit from Apple and scrutiny from overseas regulators. So selling off the company may be a way to steady the waters moving forward. If Qualcomm accepts the deal, what will this massive chip company look like for consumers? Simon says it will basically be a monopoly over the smartphone industry. Broadcom has a good hold over chips in Android and of course, Qualcomm has so far supplied chips for iOS systems. He believes they will push out most small chip companies. In terms of prices, Simon thinks the potential deal may actually lower prices for smartphone owners. He says Broadcom has a great relationship with most manufacturers and could help lower the 5% royalty Qualcomm charges Apple for every iPhone. And those savings could be passed on directly to customers.