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Qualcomm is considering a takeover of Intel
Qualcomm is said to have contacted Intel to explore the possibility of acquiring the chip maker.
Qualcomm Chief Executive Officer Cristiano Amon is personally involved in negotiations to take over Intel, the tech giant of the past five decades, according to a source familiar with the matter.
Earlier this month, Reuters reported that Qualcomm was looking into buying parts of Intel's design business, and that the PC design unit was of particular interest to Qualcomm.
Talks with Intel are at an early stage. The San Diego company has yet to make a formal offer for Intel, according to a third person familiar with the matter. Meanwhile, Intel shares rose 3.3 %, while Qualcomm shares fell 2.9 %.
Qualcomm stepped in at a time when Intel is at its weakest. Since the beginning of the year, their shares have lost almost 60 % of their value, mainly due to problems with processors. Mass layoffs have already been announced in all departments.
If the deal were to go through, it would likely face immediate scrutiny from antitrust regulators in the United States, China and Europe. Qualcomm may even have to sell off parts of Intel to win regulatory approval.
The bid would be the largest takeover attempt in the tech industry since Broadcom sought to buy Qualcomm for $142 billion in 2018, after then-President Donald Trump rejected the deal due to national security risks.
