Too many hurdles: Qualcomm allegedly loses interest in Intel takeover
It has been known for more than two months that Qualcomm wants to take over its struggling competitor Intel. Now it is said that interest is waning again.
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Qualcomm is reportedly losing interest in a takeover of Intel. This was reported by the US financial magazine Bloomberg, citing anonymous sources within the company. The reason for this is the various "complexities" that would be associated with the record takeover. All of these made the deal less and less attractive, but a purchase of parts of Intel or a revival of interest at a later date would remain conceivable. Neither company commented on the report.
It became public two months ago that Qualcomm was considering taking over the struggling chip company Intel. Intel is struggling with high losses. The former industry leader plays virtually no role in the smartphone business – and Intel has also been unable to compete with its rival Nvidia in the new chips for AI applications. Intel is also coming under increasing pressure in the PC market and in chips for data centers. On the other hand, a takeover would not be insignificant for Qualcomm, as the market capitalization of its competitor is not even twice as high.
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As Bloomberg now summarizes, an Intel takeover would have to overcome various financial, regulatory and operational hurdles. Extensive antitrust investigations would be necessary, including in China, a key market for both companies. In addition, there is the immense debt of Intel, which Qualcomm would then have to service. Whether the takeover plans are now completely off the table is not clear from the report. Just a few weeks ago, Intel CEO Pat Gelsinger assured that he wants to keep the group together and has the support of the Board of Directors to do so, Bloomberg adds.
(mho)
