Qualcomm reportedly backs out of Intel acquisition plan
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Bloomberg reported that Qualcomm, which was rumored to be considering acquiring Intel, has called off the deal. According to the report, the hurdles Qualcomm had to overcome to acquire Intel were too high.
Qualcomm Cools Takeover Interest in Intel After Financial, Regulatory Hurdle - Bloomberg
https://www.bloomberg.com/news/articles/2024-11-26/qualcomm-s-takeover-interest-in-intel-is-said-to-cool
Qualcomm reportedly loses interest in Intel takeover | Tom's Hardware
https://www.tomshardware.com/tech-industry/qualcomm-reportedly-loses-interest-in-intel-takeover
Intel has been in financial difficulty, recording a deficit of over 240 billion yen in the second quarter of 2024, and has indicated its intention to cancel large-scale projects and sell businesses to revamp capital investments.
Intel to cancel $4 trillion chip factory project in Germany and sell business to restructure operations and renew capital investments - GIGAZINE
Meanwhile, in September 2024, it was reported that Qualcomm had expressed its intention to acquire Intel. The acquisition of Intel was expected to be one of the largest acquisitions ever based on market capitalization, and it was expected that the combination of two major American semiconductor companies into one could restructure the American semiconductor industry.
Qualcomm reportedly made an acquisition offer to Intel - GIGAZINE
However, anonymous sources told Bloomberg that the complexity of buying all of Intel's shares made the deal less attractive to Qualcomm. Intel also had more than $50 billion in debt and numerous financial, regulatory and operational hurdles. In addition, Qualcomm's acquisition of Intel was subject to antitrust investigations in several countries, including China, a key market for both companies.
In an interview with Bloomberg in mid-November 2024, Qualcomm CEO Cristiano Amon made it clear that 'Qualcomm has a goal of increasing annual revenue by $22 billion (approximately 3.36 trillion yen) by fiscal 2029, but we are not considering any large acquisitions that would require this $22 billion.'
In an interview in early November 2024, Intel CEO Pat Gelsinger said, 'I intend to keep Intel a company, and my plan to do so is supported by the board of directors. And I have a lot of energy and passion to put into this effort.'
by Fortune Brainstorm Tech
'From a macroscopic perspective of industry trends, the Intel-Qualcomm partnership would have been very meaningful,' said Tom's Hardware, a hardware news site. 'Qualcomm manufactures processors for 5G devices such as smartphones, but it is not a big player in the PC field. In contrast, Intel is the largest supplier of CPUs for PCs, but has not released any products for 5G devices.'
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