Friday, September 20th 2024

Qualcomm Said to Have Approached Intel About Takeover Bid

This is not an April fool, as Qualcomm has apparently approached Intel with a takeover bid, according to the Wall Street Journal. The news follows earlier rumours about Qualcomm having eyed the opportunity to buy parts of Intel's client PC business, especially the parts related to chip design. Now it looks like Qualcomm has decided it might as well give it a go and take over Intel entirely, if the WSJ's sources can be trusted. It's still early days though and no official offers appear to have been proposed by Qualcomm so far and it doesn't appear to be a hostile takeover offer at this point in time. As such, this could turn out to be nothing, or we could see a huge change in the chip market if something comes of it.

It's worth keeping in mind that Intel's share price has dropped by around 57 percent so far this year—not taking into account today's small jump for Intel—and Qualcomm's market cap stands at over twice that of Intel's at 188 vs 93 billion US dollars. Even if Intel was to agree to a takeover offer from Qualcomm, there are several antitrust hurdles in multiple countries to get around for the two giants as well. This is despite the two not being direct competitors, but with Qualcomm recently having entered the Windows laptop market, the two are at least competing for some market share there. It's also unclear what Qualcomm would do with Intel's x86 legacy if it acquired Intel, as Qualcomm might not be interested in keeping it, at least not on the consumer side of its business. Time will tell if this is just some advanced speculation or a serious consideration by Qualcomm.
Sources: The Wall Street Journal (paywall), Reuters
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102 Comments on Qualcomm Said to Have Approached Intel About Takeover Bid

#51
lexluthermiester
TheLostSwedeQualcomm Said to Have Approached Intel About Takeover Bid
Never gonna happen. Not only does Qualcomm not have enough money but it would never pass government anti-trust approval.
Posted on Reply
#52
RimbowFish
infact, Qualcomm could pass anti-trust approval, but, really, HUAWEI could be interested more in buying the whole intel business if if there were no sanctions...........
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#53
pavle
Do it. Intel has lost their way long ago (when Apple left it to their own devices).
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#54
Geofrancis
isnt blackrock the group with its own private army?
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#55
chstamos
I know nVidia is making a killing with all the AI bubble right now, but I can't help wonder whether intel could be saved by licensing x86 to nVidia for a great lot of money. The AI bubble might deflate (even if it doesn't completely bust like cryptomining), nvidia doesn't seem like the company to put all their eggs in one basket and not care about a valuable x86 license. Or is AMD's ownership of x64 a sticking point in such a scenario?

I also don't quite see how nvidia buying intel would be the same situation as their failed attempt to purchase ARM. It seems like a different situation to me? ARM has been licensing its ISA to a whole raft of companies and nvidia is well known for its business practices, so there was the fear that nvidia would attempt to create a monopoly and lock down the architecture. There exists no such fear with the X86 ISA because it is already locked down. Intel doesn't license it to anyone apart from the standing agreements with AMD. As long as nvidia honored the licensing agreements with AMD (which they would most probably be forced to do, considering these are cross-licensing agreements, and involve AMD's 64-bit extensions, too), it seems to me that an intel buyout by nvidia would face less scrutiny than the arm buyout attempt? What am I missing here?
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#57
KaitouX
It's quite interesting that the relative market cap difference between Intel, Qualcomm and AMD is so far from their relative revenue and income numbers.
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#58
lexluthermiester
RimbowFishinfact, Qualcomm could pass anti-trust approval
No, they could not.
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#59
Neo_Morpheus
RimbowFishQualcomm could pass anti-trust approval
They might, but with lots of stipulations.
RimbowFishHUAWEI could be interested more in buying the whole intel business
Many of the mentioned companies are American hence wouldn’t be that difficult to get approval, but there is no way that Huawei gets approved, regardless of sanctions since its not an American company, to begin with.
john_AMD could go with Qualcomm in a court about AMD's and Intel's agreements that get violated by Qualcomm,
I remember this exact scenario when AMD almost died thanks to intel illegal actions and one of the stipulations was that whoever bought AMD wouldnt get the x86 license so AMD was almost worthless to be purchased.
john_but by the time the court comes to a conclusion, AMD could be crippled.
AMD could ignore whichever demands Qualcomm comes up if the original agreement with Intel is not followed.
john_AMD suffered years of anticompetitive tactics from Intel and never really get any reasonable compensation for that.
Yes and this is why i’m so happy to even hear how badly Intel is now doing. AMD didn’t get the money they deserved but man, observing karma going wild on intel must count for something. :D
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#60
mb194dc
This news is just market manipulation to help Intel stock price? Be surprised if there's any substance to this at all. Does make me wonder about how bad this quarter is going to be for Intel though...
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#61
Daven
lexluthermiesterNo, they could not.
Its highly probable that Intel spins its fabs off into another company if its not possible to buy Intel due to regulatory blocks. It’s improbable that Intel can stay profitable without major, major changes. We all need to be prepared for what’s coming.
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#62
lexluthermiester
DavenIts highly probable that Intel spins its fabs off into another company if its not possible to buy Intel due to regulatory blocks. It’s improbable that Intel can stay profitable without major, major changes. We all need to be prepared for what’s coming.
That is doubtful as well. Intel has already separated it's fabs into a new business entity. Rumors are just that. Meritless and nonsense most of the time.
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#63
Vya Domus
Qualcomm is very well embedded in the semiconductor industry, more than Intel I would say, not surprised they would want to buy them out.
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#64
Daven
lexluthermiesterThat is doubtful as well. Intel has already separated it's fabs into a new business entity. Rumors are just that. Meritless and nonsense most of the time.
No. IFS is part of Intel. All monies go into one bank account. All fab expenses are paid from Intel CPU sale revenue. A single CEO (Pat) runs all of it. IFS is not separate in anyway whatsoever.

IFS is separate when it has its own CEO, has its own IPO and stock symbol, files quarterly earnings report separate from Intel and becomes a legally separate business entity.
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#65
lexluthermiester
DavenNo. IFS is part of Intel.
It's still a separate legal entity. So yes.
DavenAll monies go into one bank account.
Incorrect. Each are separate taxable entities and thus are required, by law, to have separate accounting and banking.
DavenAll fab expenses are paid from Intel CPU sale revenue. A single CEO (Pat) runs all of it. IFS is not separate in anyway whatsoever.

IFS is separate when it has its own CEO, has its own IPO and stock symbol, files quarterly earnings report separate from Intel and becomes a legally separate business entity.
Your understand of how corporate structuring works needs revision. It's very much more complicated than you suggest.
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#66
Daven
lexluthermiesterIt's still a separate legal entity. So yes.

Incorrect. Each are separate taxable entities and thus are required, by law, to have separate accounting and banking.

Your understand of how corporate structuring works needs revision. It's very much more complicated than you suggest.
Everything you stated is incorrect. IFS is part of Intel. It is not taxed separately. I understand exactly how it works.

Intel's only reason to play accounting tricks to make it seem they split off IFS is to get orders from Apple, AMD, Nvidia, Qualcomm, etc. without conflict of interest. That has not happened and will not happen. Intel WILL sabotage any chip orders received from these companies in order to give them a leg up in the market. This is why Intel has received close to ZERO chip orders from other companies. The proof is in the pudding as they say. Only people like you play into the subterfuge but unfortunately for Intel, you are not in charge of a large chip design firm.
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#67
Easo
DavenThese are all publicly traded companies. No one is immune to buyouts. Of course, all mergers and acquisitions are subject to regulatory approval but just because it's Intel doesn't mean Intel is somehow special. It's just another corporation on the good ole stock market, available for purchase.
Intel is special. CPU market has only two players for the whole world which, literally, is dependant on them.
Doesn't matter if they are publicly traded, USA gov will simply put the foot down. Sure they can be carved up a bit, force to make some changes, etc. - but Uncle Sam needs them under control and they WILL be under control.
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#68
z1n0x
Putting aside the whole regulatory aspect. I doubt Qualcomm would want to burden themselves with Intel's problems in the first place. Buying a specific piece of Intel's business seems more plausible to me.
Qualcomm is trying to get into the PC market. But that's Intel most profitable business. Selling it is completely nonsensical.
Which lead us to Mobileye (automotive) and Altera (infrastructure). Qualcomm has presence in both markets. If there's any substance to this news, i think It'll be about Mobileye or Altera.
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#69
john_
Neo_MorpheusYes and this is why i’m so happy to even hear how badly Intel is now doing. AMD didn’t get the money they deserved but man, observing karma going wild on intel must count for something. :D
Considering Qualcomm has used also very questionable anticompetitive moves in the past, in fact Nvidia used those anticompetitive tactics as one of the excuses to exit smartphone SOC market, I would be happier if Intel was bought from someone else, if there was any chance of this scenario becoming a reality. Qualcomm buying Intel would have been a very bad scenario.
chstamosI know nVidia is making a killing with all the AI bubble right now, but I can't help wonder whether intel could be saved by licensing x86 to nVidia for a great lot of money. The AI bubble might deflate (even if it doesn't completely bust like cryptomining), nvidia doesn't seem like the company to put all their eggs in one basket and not care about a valuable x86 license. Or is AMD's ownership of x64 a sticking point in such a scenario?
I doubt x86 license retains the value it had 20 years ago when Nvidia asked for one. ARM today is competitive in many markets and Nvidia is already using it in servers.
When AI bubble deflates, if it ever deflates or in case other hardware becomes preferred to GPUs, Nvidia can still take over the market thanks to it's superior GPUs and the power it can exercise on the market. A SoC with ARM cores and Nvidia iGPU could become easily a huge success in the market tomorrow. A platform with an Nvidia CPU and an Nvidia GPU that will be exclusive to that platform could also manage to get a portion of enthusiast gamers. Windows on ARM seems to be working this time and I bet that whatever Qualcomm can build today to run Windows on ARM and games on PCs, Nvidia can do it many times better and faster. As for AMD, unfortunately as we can see in the GPU business they can't fight Nvidia. AMD will come to an agreement eventually with Nvidia, or Nvidia might decide to start a price war in GPUs that Radeon wouldn't be able to fight. Nvidia is way too powerful today, that's why it wasn't allowed to take over ARM. And if US considers x86 extremely important, that's a reason for Qualcomm to not get Intel or AMD. Because Qualcomm probably wouldn't be interested to keep investing on x86.
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#70
thesmokingman
mb194dcThis news is just market manipulation to help Intel stock price? Be surprised if there's any substance to this at all. Does make me wonder about how bad this quarter is going to be for Intel though...
As I posted earlier, pump n dump news play.
Posted on Reply
#71
Neo_Morpheus
john_Considering Qualcomm has used also very questionable anticompetitive moves in the past, in fact Nvidia used those anticompetitive tactics as one of the excuses to exit smartphone SOC market, I would be happier if Intel was bought from someone else, if there was any chance of this scenario becoming a reality.
Agreed. I mentioned this on another post.
john_Qualcomm buying Intel would have been a very bad scenario.
See above.
john_A platform with an Nvidia CPU and an Nvidia GPU that will be exclusive to that platform could also manage to get a portion of enthusiast gamers.
That would be as bad or worse for the whole industry, but for some weird reason, everyone now keeps giving Ngreedia free passes and dont even call out their many anti consumer practices.
john_As for AMD, unfortunately as we can see in the GPU business they can't fight Nvidia.
That’s not entirely true and on the contrary, they are fighting, with a way smaller budget and getting decent results.
The are behind on the software part but are working on it (ROCm vs CUDA). Example, their MI300X parts are faster than the targeted competitor (H100).
On the top 10 supercomputers, they hold several spots, including the first one.

The problem with gamers is that we now have these influencers that don’t educate consumers into not falling for non platform agnostic tech and instead praise such things. Just see how none of them, ever, make any such warnings about dlss?
Or overhype tech that its still not entirely ready for mass consumption, like RT.
I can go on, but I’m already gone way off topic.
Posted on Reply
#72
Daven
EasoIntel is special. CPU market has only two players for the whole world which, literally, is dependant on them.
Doesn't matter if they are publicly traded, USA gov will simply put the foot down. Sure they can be carved up a bit, force to make some changes, etc. - but Uncle Sam needs them under control and they WILL be under control.
There are literally dozens and dozens of CPU players nowadays. I think you are missing why Intel is struggling lately. You are just thinking about the computer gaming enthusiast DIY market here at TPU. If Intel disappeared right now, it would just mean Qualcomm, Apple, AMD, Nvidia, Mediatek, Huawei, IBM, Samsung, other ARM and Risc-V licensees and more companies would fill the gap. In fact that's what's happening right this very second as Intel's revenues, margins and market share plummets.

Intel is not special. Not anymore. And not ever again.
Neo_MorpheusThat’s not entirely true and on the contrary, they are fighting, with a way smaller budget and getting decent results.
A good example of this is how AMD has and is beating Intel. :)
Posted on Reply
#73
Neo_Morpheus
DavenThere are literally dozens and dozens of CPU players nowadays. I think you are missing why Intel is struggling lately. You are just thinking about the computer gaming enthusiast DIY market here at TPU. If Intel disappeared right now, it would just mean Qualcomm, Apple, AMD, Nvidia, Mediatek, Huawei, IBM, Samsung, other ARM and Risc-V licensees and more companies would fill the gap. In fact that's what's happening right this very second as Intel's revenues, margins and market share plummets.

Intel is not special. Not anymore. And not ever again.
You forgot that IBM opened POWER and are still developing them. Heck, maybe they should take another shot.
DavenA good example of this is how AMD has and is beating Intel. :)
Exactly and again, with way less resources aka money to do so.
Posted on Reply
#74
lexluthermiester
DavenIntel is not special. Not anymore. And not ever again.
Wow... :slap:
Posted on Reply
#75
john_
Neo_MorpheusThat’s not entirely true and on the contrary, they are fighting, with a way smaller budget and getting decent results.
I mean that Nvidia can destroy them any day they like. They will not do it because of margins and other reasons, but they can. AMD keeps putting MSRP prices on it's GPUs based on Nvidia prices not to just enjoy better profit margins, as many are whining all the time, or just use it as an example to keep paying Nvidia, but because they know they can't win a price war. They don't have the technology advantage, they don't have the strong brand in GPUs, they don't have tech and consumer support, they don't have the necessary wafers from TSMC. If AMD was dropping the price of 7900XTX to $600, Nvidia would drop the price of 4800 SUPER at $700 and still sell more cards while making much higher profit from each card compared to AMD.

So, Nvidia can move the market in any direction they want and it is one of the reasons why I was insisting that Intel will NEVER abandon gaming GPUs no matter how bad ARC is doing in sales, when others had it certain that Intel will abandon it's efforts because it was bleeding money. Because tomorrow Nvidia can say "I have a new ARM platform for desktop and laptop PCs and all my new high end and enthusiast cards will be released primary on that platform and only many months later on x86 platforms. And because i am using a new proprietary interface, they will perform better on my ARM based platform while also being cheaper than the ones sold for the x86 platform". AMD could follow with something similar on AM6 or AM7 and Intel end up being the poor platform for business PCs, lacking GPU power to compete in other markets. That's why we hear left and right that Intel might sold this part of the business, or that part of the business but NO ONE says anything about Intel dropping discrete GPUs. It's way to important today.

That's what I mean they can't fight Nvidia. Nvidia totally controls the GPU market.
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