Qualcomm’s interest in acquiring Intel appears to have cooled due to the complexities involved in a full acquisition, according to Bloomberg News. Sources cited by the publication suggest that Qualcomm may shift its focus to acquiring parts of Intel or revisiting the idea at a later stage. The challenges of taking over the entire company have reportedly made the deal less appealing to the chipmaker.
In September, reports emerged that Qualcomm had made a preliminary approach to Intel regarding a potential takeover. This development came shortly after Intel issued a disappointing earnings forecast, revealing plans to reduce its workforce by 15% to cut costs and realign its business focus. The financial strains at Intel, combined with over $50 billion in existing debt, presented significant obstacles to a complete acquisition.
The potential merger between Qualcomm and Intel would have been the semiconductor industry’s largest, but it also faced substantial regulatory and operational hurdles. Global antitrust scrutiny loomed over the deal, given the impact of combining two leading chip manufacturers.
Meanwhile, Qualcomm had previously considered acquiring segments of Intel’s design business, according to a report by Reuters. Intel, however, stated that no formal approach had been made, and Qualcomm refrained from commenting on the matter.
(Source: Bloomberg)
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