- Joined
- May 21, 2024
- Messages
- 709 (3.46/day)
In a recent report from Bloomberg citing people familiar with the matter, it seems that Qualcomm is now rethinking its acquisition of Intel because of financial and regulatory issues, which indicates that the potential purchase of Intel is, in some way, losing speed. Undoubtedly, the prospective arrangement has its flaws which are of a big nature. Let us not forget that Intel's debt burden of approximately $50 billion further complicates the company's financial picture. Further to the merger, regulatory approvals would be involved, which would be a long process and, therefore, very difficult. Qualcomm is currently thinking about whether to buy only a certain segment of Intel's business, possibly the division of the company that produces semiconductor chips, instead of the whole company.
Intel's CEO, Pat Gelsinger, has made it clear that they are not planning to split up the company. During an interview in November, he talked about his determination which he described as "energy and passion" to move the organization in the right direction and their strategy of "being different and at the same time, better together." Intel is leveraging other options to better its financial standing as recently this week, the company closed a $7.86 billion financing deal which is part of the US CHIPS Act, among the $3 billion from Pentagon contract confirmed this summer. Intel is still on the lookout for possibilities to do away with some of its divisions; Altera is one that it seems to be most willing to sell. Lattice Semiconductor has made a statement that it is ready to take over Altera and it would not be a surprise if Qualcomm also enters the bidding game. Qualcomm's goal is to generate an additional $22 billion in annual revenue by 2029, however, CEO Cristiano Amon said in a Bloomberg interview last week that "right now, at this time, we have not identified any large acquisition that is necessary for us to execute on this $22 billion."
View at TechPowerUp Main Site | Source
Intel's CEO, Pat Gelsinger, has made it clear that they are not planning to split up the company. During an interview in November, he talked about his determination which he described as "energy and passion" to move the organization in the right direction and their strategy of "being different and at the same time, better together." Intel is leveraging other options to better its financial standing as recently this week, the company closed a $7.86 billion financing deal which is part of the US CHIPS Act, among the $3 billion from Pentagon contract confirmed this summer. Intel is still on the lookout for possibilities to do away with some of its divisions; Altera is one that it seems to be most willing to sell. Lattice Semiconductor has made a statement that it is ready to take over Altera and it would not be a surprise if Qualcomm also enters the bidding game. Qualcomm's goal is to generate an additional $22 billion in annual revenue by 2029, however, CEO Cristiano Amon said in a Bloomberg interview last week that "right now, at this time, we have not identified any large acquisition that is necessary for us to execute on this $22 billion."
View at TechPowerUp Main Site | Source
..
..
