Qualcomm’s acquisition interest in Intel is said to have cooled
Qualcomm’s interest in acquiring Intel has cooled, according to people familiar with the matter, upending what would likely have been one of the biggest technology deals of all time.
The complexities associated with acquiring Intel have made a deal less attractive for Qualcomm, some of the people said, asking not to be identified discussing confidential matters. It’s always possible that Qualcomm will look at pieces of Intel instead or rekindle its interest later, she added.
An acquisition of Intel would have been among the largest acquisitions in history based on current market value. A successful deal would have been the largest purchase of a technology hardware company, surpassing Broadcom’s acquisition of software maker VMWare in 2023. And it could have helped reshape the semiconductor landscape, creating a bigger U.S. chip leader at a time when global governments are competing to boost domestic supply.
Representatives for Qualcomm and Intel declined to comment.
Qualcomm has approached Intel about a possible acquisition, Bloomberg News and other media reported in September. It came just weeks after Intel communicated a bombshell earnings report, in which it delivered a disappointing revenue forecast and outlined a 15 percent workforce reduction in an effort to “resize and refocus.”
But the transaction faced numerous financial, regulatory and operational hurdles, including the assumption of Intel’s debt of over $50 billion (approximately Rs. 4,21,494 crore). It would likely have led to a lengthy and difficult antitrust analysis, including in China, an important market for both companies.
Qualcomm would have to handle Intel’s money-losing semiconductor manufacturing unit, a business where it has no experience.
Qualcomm has been looking ahead to new markets – including personal computers, networking and automotive chips – to generate another $22 billion (about Rs. 1,85,457 crore) in annual revenue by fiscal 2029.
The CEO of the San Diego-headquartered company, Cristiano Amon, said in a Bloomberg Television interview last week that “we have not, at this time, identified any major acquisitions that are necessary to deal with this $22 billion to be able to carry out. about Rs.
‘Better together’
Intel, which until recently was one of the largest chipmakers by value, is trying to reinvent itself. Rivals such as Nvidia have retreated from the race to supply chips that can meet the huge demand for artificial intelligence.
The Santa Clara, California-based company has a market value of around $107 billion (approximately Rs. 9,02,042 crore). That’s despite the fact that shares are down about 51 percent year to date.
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