But as many analysts predicted, Qualcomm said the bid was too low.
"It is the board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", said Paul Jacobs, Executive chairman and chairman of the Qualcomm board. Broadcom could also increase its bid to enhance the deal's appeal.
The Broadcom offer is a 28% premium on Qualcomm stock's closing price on Thursday.
Qualcomm, which makes the Snapdragon chips found in smartphones and tablets, is the world's No. 3 chip supplier, according to research firm Gartner, trailing Intel and Samsung.
In an interview with the Union-Tribune last week Broadcom CEO Hock Tan said Broadcom "made a very compelling offer to shareholders, and we believe it is a very fair and attractive proposal".
Qualcomm's shares have been weighed down by its nasty legal battle with Apple over patent royalties, fines from antitrust regulators and slow progress on its planned $38 billion acquisition of NXP Semiconductors. Apparently, it is considering raising its bid, but also wants to submit its own selection of directors for Qualcomm's board.
Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.
Neither company has commented on the report, but it wouldn't be shocking if Qualcomm held out.