According to rumors, Qualcomm recently approached Intel regarding a possible takeover. Qualcomm’s successful acquisition of the entire company would be the biggest deal of all time in the technology industry.
As of Friday’s market close, Intel’s capitalization exceeded $90 billion. Intel’s shares surged during after-hours trading following a report by The Wall Street Journal, which first broke the news.
This potential acquisition would be the largest in chip industry history and would come at a time when Intel is struggling amid stiff competition and declining revenues. The tech giant has lost over 50% of its market value this year, and its 2023 revenue dropped to $54.2 billion from $63.1 billion in 2022. In contrast, Qualcomm’s 2023 revenue was $35.8 billion, down from $44 billion the previous year.
Qualcomm could sell off parts of Intel’s business to different buyers
However, if the acquisition were to proceed, the deal would likely face regulatory scrutiny, given the size of the companies and their operations in China, where past semiconductor deals have been blocked.
Qualcomm’s previous attempt to acquire NXP Semiconductor in 2018 and Broadcom’s $100 billion bid to buy Qualcomm in 2017 were foiled by regulatory bodies over antitrust and national security concerns.
If this takeover materializes, it will surpass Dell
Erik Stromquist, chairman of CTL and an Intel partner, remarked that such a transaction would be monumental, saying, “There are no words to describe the impact on the industry.
Neither Qualcomm nor Intel have commented publicly on the rumors of a potential deal.
