Qualcomm has reportedly reached out to Intel to discuss options around an acquisition. If the deal goes through, it would be the largest technological merger ever.
The Wall Street Journal reported in late September that Qualcomm is interested in acquiring Intel. It sought rapprochement this week to look at the possibilities. In the hours after the news, Intel’s stock price shot up eight percent. Qualcomm’s fell four percent.
Should the deal go through, it would be the largest technology deal ever. Intel today has a market value of $96 billion. A deal of this size will be viewed with suspicion anyway. Regulators worldwide will have to give their approval for it to go through, if at all.
Heavy water
Intel is in heavy water today. It announced a palace revolution with a spin-off of its chip factories, slowdown of its European chip factories and the only positive news being a custom chip deal with AWS. The sleeping giant seems to be waking up with this, but now a buyer (/caper) is lurking with Qualcomm.
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Will Intel be all right?
The timing is not coincidental. With the bad news surrounding Intel in recent months, the stock price took an unprecedented plunge. Whereas at the end of July it was still quoted at $34, today the stock is worth $21. The moment for Qualcomm to have a talk.
Obviously, neither Intel nor Qualcomm will confirm this news in the coming period. We also have to wait and see if the Wall Street Journal report is accurate. If so, a technology monster deal is in the works. According to Bloomberg, Intel’s corporate top brass would not be eager for a takeover.
Presidential elections
In any case, Qualcomm appears to be in no hurry. It is waiting for the presidential election before moving forward with plans, possibly even until after the new president’s inauguration in January, according to Bloomberg. Who becomes president could affect the acquisition’s chances of success, as well as the relationship between the U.S. and other countries, which in turn could influence the attitude of market regulators.
Qualcomm has a history with one of the two candidates: as recently as 2017, then-U.S. President Trump stopped a takeover of Qualcomm by Broadcom. The deal was worth $100 billion, but did not go through.
For now, how this saga will unfold remains a mystery. News reports are contradictory at times and the parties involved are keeping their lips tightly sealed for now. It may have to wait until early next year before everything falls into the fold.
This article originally appeared on Sept. 20. It has been updated with the latest information.