Qualcomm approaches Intel to explore potential acquisitions

Qualcomm recently initiated talks with Intel to explore a potential acquisition, it reports Reuters citation of sources.

The talks, which involve Qualcomm CEO Cristiano Amon, are at an early stage with no formal offer yet made for the chipmaker.

Qualcomm’s interest in Intel comes at a time when the latter is facing market challenges, with its shares losing nearly 60% of their value since the start of 2024.

San Diego-based Qualcomm, which has a market value of $188 billion, is looking at Intel’s entire portfolio, including its computer design unit.

According to a source briefed on the negotiations, Amon is personally involved in examining various options for a deal.

Earlier this month, it was reported that Qualcomm showed interest in acquiring parts of Intel’s design business.

However, the talks have not progressed to a formal bid stage and Intel declined to comment.

Requests for comment from Qualcomm also did not elicit a response.

A potential acquisition by Qualcomm would likely face intense scrutiny from antitrust regulators in the US, China and Europe.

There is speculation that Qualcomm may have to divest parts of Intel to get regulatory approvals.

If it goes ahead, the bid would be the biggest takeover attempt in the tech industry since Broadcom’s failed bid for Qualcomm in 2018.

Funding for the acquisition remains a question, as Qualcomm has about $13 billion in cash and it is unclear how it will handle Intel’s contract manufacturing business, given that Qualcomm has no history of operating chip factories.

Intel, on the other hand, has focused on a turnaround strategy, including a focus on artificial intelligence processors and setting up a foundry business.

In a separate development, Bloomberg reported that Apollo Global Management has offered to invest up to $5 billion in Intel, which could be a boost to the chipmaker’s efforts to revitalize its business.

Intel is also making strategic moves, such as halting construction of factories in Poland and Germany, reducing real estate holdings, and securing a deal to produce a custom networking chip for Amazon’s AWS.

“Qualcomm approaches Intel to explore potential acquisitions” was originally created and published by Verdict, a brand owned by GlobalData.

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