There will be no Intel acquisition just yet. The chip giant’s management reportedly rejected recent offers from Qualcomm and Arm.
That Intel is in difficult waters has long been known. Competitors see a unique opportunity in Intel’s current situation. Qualcomm chased a small shock wave through the tech industry by submitting a takeover bid to Intel. Bloomberg writes that Arm, too, is said to have jumped at the chance to snap up part of Intel.
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Showed the door
Intel’s value has nearly halved in one year. This makes companies like Qualcomm and Arm feel that the chip giant of yesteryear is within their reach. Qualcomm and Arm themselves harbor big ambitions in the PC industry. Yet Intel is still worth $96 billion. Arm did only have interest in Intel’s product division; it is not clear if the same was true of Qualcomm.
According to Bloomberg, Intel’s corporate top brass has shown both Qualcomm and Arm the door. So Intel, at least for now, is drawing a line under rumors that a takeover is imminent. The company is looking at other avenues to turn the tide again. An old acquaintance already wants to give Intel a five-billion-dollar push.
Sleeping giant
Intel seems to have woken up and announced major reforms about two weeks ago. The (loss-making) Foundry division that houses its own chip factories would be divested. Intel further wants to cut costs by laying off its 10,000 employees.
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