Wednesday, November 27th 2024

Qualcomm Abandons Intel Takeover, Focuses on Division Acquisitions

In a recent report from Bloomberg citing people familiar with the matter, it seems that Qualcomm is now rethinking its acquisition of Intel because of financial and regulatory issues, which indicates that the potential purchase of Intel is, in some way, losing speed. Undoubtedly, the prospective arrangement has its flaws which are of a big nature. Let us not forget that Intel's debt burden of approximately $50 billion further complicates the company's financial picture. Further to the merger, regulatory approvals would be involved, which would be a long process and, therefore, very difficult. Qualcomm is currently thinking about whether to buy only a certain segment of Intel's business, possibly the division of the company that produces semiconductor chips, instead of the whole company.

Intel's CEO, Pat Gelsinger, has made it clear that they are not planning to split up the company. During an interview in November, he talked about his determination which he described as "energy and passion" to move the organization in the right direction and their strategy of "being different and at the same time, better together." Intel is leveraging other options to better its financial standing as recently this week, the company closed a $7.86 billion financing deal which is part of the US CHIPS Act, among the $3 billion from Pentagon contract confirmed this summer. Intel is still on the lookout for possibilities to do away with some of its divisions; Altera is one that it seems to be most willing to sell. Lattice Semiconductor has made a statement that it is ready to take over Altera and it would not be a surprise if Qualcomm also enters the bidding game. Qualcomm's goal is to generate an additional $22 billion in annual revenue by 2029, however, CEO Cristiano Amon said in a Bloomberg interview last week that "right now, at this time, we have not identified any large acquisition that is necessary for us to execute on this $22 billion."
Source: Bloomberg
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8 Comments on Qualcomm Abandons Intel Takeover, Focuses on Division Acquisitions

#1
Chaitanya
Given the recent legal troubles that Qualcomm is facing this is understandable. Also there might have been regulatory roadblocks in EU and other places.
Posted on Reply
#2
lexluthermiester
Nomad76Qualcomm is now rethinking its acquisition of Intel because of financial and regulatory issues
Oh gee, who called that one.. Tada..
ChaitanyaGiven the recent legal troubles that Qualcomm is facing this is understandable. Also there might have been regulatory roadblocks in EU and other places.
While that's possible, the anti-trust issues stateside loomed large.
Posted on Reply
#3
docnorth
You can't abandon something that didn't exist (I mean the takeover, not Intel).:p
Posted on Reply
#4
lexluthermiester
docnorthYou can't abandon something that didn't exist (I mean the takeover, not Intel).:p
Good point.
Posted on Reply
#5
bonehead123
Well, like the old saying goes:

"The 8 scariest words in the english language are "I'm from the Gov't & I'm here to help", hahahaha.... :D..:roll:..:respect:
Posted on Reply
#6
Wirko
So no sale, probably until 2025 Black Friday...
Posted on Reply
#7
SailorMan1520
Let us not forget that Intel's debt burden of approximately $50 billion further complicates the company's financial picture. Further to the merger, regulatory approvals would be involved, which would be a long process and, therefore, very difficult.

Wtf this company has a dept of 50 billion. Shit that's a really huge and big amount. I just thought they had make a big profit with the last 10-20 years. Of leadership in the users CPU division.

AMD could only recover and got back to her way of real competition in 2017 with the Ryzen CPUs. Well only the ZEN2 architecture, provided massive acceleration. Best example, the legendary 3700x.

So I'm asking myself where the profit is gone of INTEL.
Greets
Posted on Reply
#8
mb194dc
The takeover story was clearly nonsense from day one...
Posted on Reply
Dec 8th, 2024 14:46 CST change timezone

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