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Qualcomm Reportedly Loses Interest In Intel Takeover

(Wednesday November 27, 2024 @05:00AM (BeauHD) from the cold-feet dept.)


Qualcomm's [1]interest in acquiring Intel is [2]cooling due to the complexity of the deal, Intel's debt, and regulatory hurdles . However, according to [3]Bloomberg , Qualcomm may still explore acquiring certain divisions of Intel to expand into markets like PCs and networking. Tom's Hardware reports:

> [T]he proposed acquisition faced significant obstacles, including Intel's $50 billion debt, dropping CPU market share, and its struggling semiconductor manufacturing unit, an area where Qualcomm lacks expertise. A deal of this magnitude would also likely trigger extensive regulatory scrutiny, particularly in China, a key market for both companies.

>

> Intel is undergoing significant restructuring under CEO Pat Gelsinger to reclaim its competitiveness in the semiconductor market in terms of products and process technologies. Still, for now, both Intel and Qualcomm are quite successful standalone companies. While the combination would make a formidable firm (probably facing unprecedented antitrust scrutiny), it does not make much sense for Qualcomm to make such a massive takeover. These factors have collectively made a complete takeover less appealing to Qualcomm. Meanwhile, selling off a part of the company to Qualcomm may not make sense for Intel.

>

> Qualcomm aims to generate $22 billion in annual revenue by 2029 by expanding into markets like personal computers, networking, and automotive chips. Although Cristiano Amon, Qualcomm's chief executive, has stated that his company did not need a major takeover to achieve this goal, the company initiated preliminary discussions with Intel regarding a potential acquisition in September. Yet, it does not look like the deal is going to happen.



[1] https://hardware.slashdot.org/story/24/09/21/1035249/qualcomm-approached-intel-about-a-takeover

[2] https://www.tomshardware.com/tech-industry/qualcomm-reportedly-loses-interest-in-intel-takeover

[3] https://www.bloomberg.com/news/articles/2024-11-26/qualcomm-s-takeover-interest-in-intel-is-said-to-cool?utm_medium=social&utm_source=telegram&utm_content=business&embedded-checkout=true



And crappy tech... (Score:2)

by gweihir ( 88907 )

Qualcomm is just too nice to say that. Intel is a lemon at this time. A lemmon nobody sane wants.

Logic is a systematic method of coming to the wrong conclusion with confidence.