Qualcomm Said to Have Approached Intel About Takeover Bid

[TheLostSwede]

This is not an April fool, as Qualcomm has apparently approached Intel with a takeover bid, according to the Wall Street Journal. The news follows earlier rumours about Qualcomm having eyed the opportunity to buy parts of Intel's client PC business, especially the parts related to chip design. Now it looks like Qualcomm has decided it might as well give it a go and take over Intel entirely, if the WSJ's sources can be trusted. It's still early days though and no official offers appear to have been proposed by Qualcomm so far and it doesn't appear to be a hostile takeover offer at this point in time. As such, this could turn out to be nothing, or we could see a huge change in the chip market if something comes of it.

It's worth keeping in mind that Intel's share price has dropped by around 57 percent so far this year—not taking into account today's small jump for Intel—and Qualcomm's market cap stands at over twice that of Intel's at 188 vs 93 billion US dollars. Even if Intel was to agree to a takeover offer from Qualcomm, there are several antitrust hurdles in multiple countries to get around for the two giants as well. This is despite the two not being direct competitors, but with Qualcomm recently having entered the Windows laptop market, the two are at least competing for some market share there. It's also unclear what Qualcomm would do with Intel's x86 legacy if it acquired Intel, as Qualcomm might not be interested in keeping it, at least not on the consumer side of its business. Time will tell if this is just some advanced speculation or a serious consideration by Qualcomm.



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[R0H1T]

Well let's hope Intel doesn't accept/deal isn't allowed in the first place! QC's probably going to trash their CPU division first with a wrecking ball if they ever got their greedy paws on x86

 

[Darmok N Jalad]

The problem with rumors in this regard is that they are usually quite true once they get to the public. If the execs say something like "we don't talk about rumors" then it's high-to-likely there's a deal on the table.

That said, good luck getting this one through all the regulatory hoops. Hard to believe where Intel sits these days. They went from dominant and untouchable to possibly being bought up by someone bigger. And Qualcomm could just keep working patents and licenses on x86 and not even keep it going, but that would be really foolish. Their entrance into the Windows world is such a small blip in available marketshare, and obviously x86 is still a very important architecture for everyday life and business.

 

[Daven]

This was bound to happen with Intel's stock price so low. I don't see Intel turning around the company all by themselves (management has proven to be incompetent). But it would be better for the industry if the chip design and foundry business were split into separate companies. All companies having access to all the world's fabs without worrying about conflict of interest is good for everyone.

 

[z1n0x]

I don't see how any regulator would allow this. Even in the US, let alone EU and China.

 

[Daven]

The problem with rumors in this regard is that they are usually quite true once they get to the public. If the execs say something like "we don't talk about rumors" then it's high-to-likely there's a deal on the table.

That said, good luck getting this one through all the regulatory hoops. Hard to believe where Intel sits these days. They went from dominant and untouchable to possibly being bought up by someone bigger. And Qualcomm could just keep working patents and licenses on x86 and not even keep it going, but that would be really foolish. Their entrance into the Windows world is such a small blip in available marketshare, and obviously x86 is still a very important architecture for everyday life and business.

Even AMD can purchase Intel through stock shares alone. AMD stands at $250B market cap.

 

[R0H1T]

And Qualcomm could just keep working patents and licenses on x86 and not even keep it going, but that would be really foolish.

Won't get through probably due to their cross license with AMD, unless you meant just the x86 part?

 

[Darmok N Jalad]

Even AMD can purchase Intel through stock shares alone. AMD stands at $250B market cap.

Imagine Intel going through a hostile takeover. They need to get their share price up!

 

[z1n0x]

AMD's shares took a nose dive after market.
Looks like investors are believing in this rumour.

Glitch. I've seen it happen many times.

 

[R0H1T]

They can believe whatever they want, among current chip makers AMD has the most diverse portfolio.

 

[redeye]

Won't get through probably due to their cross license with AMD, unless you meant just the x86 part?

I Agree.
Does AMD have a perpetual license to the X 86 instruction set, similar to Apple’s perpetual non-revocable license to the ARM instruction set?

 

[TheLostSwede]

Glitch. I've seen it happened many times.

You might be right, some really odd stuff going on right now.

 

[R0H1T]

I Agree.
Does AMD have a perpetual license to the X 86 instruction set, similar to Apple’s perpetual non-revocable license to the ARM instruction set?

Based on most reports, yes, but it could be tested in court if this does go through. And if I were QC, I wouldn't bet on winning; they're already in a similar (worse?) situation with ARM over Nuvia ~ don't want to try their luck here!

 

[TheLostSwede]

I Agree.
Does AMD have a perpetual license to the X 86 instruction set, similar to Apple’s perpetual non-revocable license to the ARM instruction set?

Who cares about x86, AMD owns x86-64 (previously amd64).
By now, x86 is largely obsolete in terms of the instruction sets that are being used by a modern computer and what's left could most likely quite easily be emulated by a modern CPU if needed.

If this is anything to go by, x86 kind of died with Windows 8.

x64 vs. x86: Key Differences {Features, Limitations, and Use Cases}

x64 vs x86: Learn the key differences, features, and use cases of the two instruction set architectures. See how to check your ISA type.

phoenixnap.com

 

[trsttte]

Imagine Intel going through a hostile takeover. They need to get their share price up!

Just goes to show markets can be absolute nonsensical at times. Just the fab business could be worth double the current market cap of Intel, heck it posted almost double the sales than Qualcomm last year but here it is valued at half with a rumoured merger.

I'm surprised something like this didn't happen sooner but with Nvidia at the helm, unlike qualcomm they're really swimming in money and a takeover would be easy if they were able to pass the regulators part - probably why they didn't go for it after the failed attempt with ARM.

 

[RogueSix]

Just the fab business could be worth double the current market cap of Intel...

Yep. The magic word here is "could" . The fabs COULD be worth double the market cap IF they would produce more than degraded, inefficient and underperforming trash.

This is not the case. The fabs are completely worthless at the moment. If Intel would receive a symbolic $1 offer then Intel would be well advised to take it. $1 is better than more billions down the shitter with naught to show for it.

 

[Easo]

Unlikely to happen and frankly Intel IS too big to be swallowed that easily regardless of all recent troubles. I really do not think Qualcomm realistically can do that.
Sharks are drawn to blood in the water but Uncle Sam has a final say regarding Intel for what should be obvious reasons to everyone.

 

[dir_d]

Unlikely to happen and frankly Intel IS too big to be swallowed that easily regardless of all recent troubles. I really do not think Qualcomm realistically can do that.
Sharks are drawn to blood in the water but Uncle Sam has a final say regarding Intel for what should be obvious reasons to everyone.

I don't think uncle Sam will let Intel fall or be sold. This goes double after they released funds for the CHIPS Act and has unofficially stated that Intel is the USA's chip manufacture of choice.

 

[Makaveli]

I don't think uncle Sam will let Intel fall or be sold. This goes double after they released funds for the CHIPS Act and has unofficially stated that Intel is the USA's chip manufacture of choice.

This and regulatory approval would never happen.

The US government needs someone inside the US to make their chips for the military etc.

 

[Wirko]

Who cares about x86, AMD owns x86-64 (previously amd64).
By now, x86 is largely obsolete in terms of the instruction sets that are being used by a modern computer and what's left could most likely quite easily be emulated by a modern CPU if needed.

If this is anything to go by, x86 kind of died with Windows 8.

x64 vs. x86: Key Differences {Features, Limitations, and Use Cases}

x64 vs x86: Learn the key differences, features, and use cases of the two instruction set architectures. See how to check your ISA type.

phoenixnap.com

Both were patented, and the patents have long expired. They expire in 20 years, and that's after filing the application.
What's still valuable are the extensions, SSE3 (which is to expire soon) and newer. This article tells more, even if it's rather old:

The never-ending story of X86 patents expiration

Every couple of years, this story re-emerges, and everybody starts to talk about the upcoming expiry of x86 related patents. They were followed by several stories revolving emulation and the forthcoming flood of third-party implementations of compatible processors. But this never happens. Why?

www.blopeur.com

Apple’s perpetual non-revocable license to the ARM instruction set

That applies to the existing ARM instruction set. Sooner or later ARM will put ogether a new version, or rather a new extension for matrix math/security/whatever. I don't think Apple, Samsung, QC and others will just automatically get the license without paying again.

But it would be better for the industry if the chip design and foundry business were split into separate companies. All companies having access to all the world's fabs without worrying about conflict of interest is good for everyone.

That's how it seems right now, yes. Should any company buy the entire Intel, they would inherit the issue, and the issue is that you can't offer your fab services to your competition and hope they'd trust you.

 

[damric]

They need to ditch those foundries ala GLFO 2.0.

 

[Daven]

Unlikely to happen and frankly Intel IS too big to be swallowed that easily regardless of all recent troubles. I really do not think Qualcomm realistically can do that.
Sharks are drawn to blood in the water but Uncle Sam has a final say regarding Intel for what should be obvious reasons to everyone.

These are all publicly traded companies. No one is immune to buyouts. Of course, all mergers and acquisitions are subject to regulatory approval but just because it's Intel doesn't mean Intel is somehow special. It's just another corporation on the good ole stock market, available for purchase.

 

[Gooigi's Ex]

WOW!!! Intel is not doing good to a point QUALCOMM of all companies can purchase Intel? That's crazy to think about and really shows where Intel is at. if you have told me this 10 years ago, I would laugh in the face of the person who told me and and never stop laughing...

And Intel IS STILL cleaning out their closet and paying back for all they did back in the day. I hope their journey ends on a good note. I don't want Intel gone and sure as hell don't want Qualcomm to get them..

 

[mechtech]

"Qualcomm's market cap stands at over twice that of Intel's at 188 vs 93 billion US dollars"

Wait what?! That's it?!?!?!

Hasn't their net income been about $20bi per year for past 5 years!?!?

Intel Reports Fourth-Quarter and Full-Year 2021 Financial Results

www.intc.com

 

[Wirko]

Who Qualcomm is owned by:


Who Intel is owned by:


(Of course it doesn't end here. The list is very similar for AMD. Also Nvidia, except for a certain individual who owns ~3.8%)

The huge operation known to the public as "Qualcomm buys Intel" would actually boil down to "accountants at mutual funds update some records", more or less.