Qualcomm has told Broadcom that it has rejected its “best and final offer” of $121 billion because of several factors. One is valuation. Qualcomm believes that it is worth more than a cash and stock bid of $82 a share. In addition, Qualcomm has stated that if a deal is agreed to and government regulators refuse to clear it, the company will be “enormously and irreparably damaged.” As a result, the company wants to have a break-up fee in place that is higher than the usual 3%-4% of the transaction’s value. Broadcom has reportedly agreed to an $8 billion fee, which is 6% of the deal’s value.