Qualcomm appears to be shelving plans to take over Intel again. The company says it has “no major acquisitions on the horizon.
The rumor that Qualcomm would like to acquire Intel sent shockwaves through the tech world in late September. What could have been the biggest acquisition ever seems unlikely to come to pass. Qualcomm appears to be pulling out. CEO David Amon tells Bloomberg that there are no plans for “major acquisitions” at this time.
Unlikely
A merger between Qualcomm and Intel seemed unlikely from the beginning. An acquisition of that magnitude would have a very difficult time getting approval from regulators. Moreover, Qualcomm has a not so favorable history with the next president of the United States. But the deal would also come under scrutiny in China.
read also
Trump (again) president: what should the tech industry expect?
That Qualcomm was at all eligible to take over Intel is illustrative of the problems at Intel. In times when Intel was doing well, the company would always have been out of reach. Intel has been in dire straits for some time, and the company’s stock market value took a big dive. Now Intel’s total value is skimming around $100 billion.
Better together
Intel itself never gave the impression of wanting to accept Qualcomm’s bid. CEO Pat Gelsinger is confident he can turn the tide. Intel recently announced major reforms. ‘Together we are better’ is Intel’s strategy, Gelsinger confirmed to Bloomberg. At the same time, there are no sacred cows: some divisions such as Altera have been put on display.
read also
Will Intel be all right?
Whether Qualcomm draws a definitive line on an Intel acquisition remains to be seen. Possibly interest could rekindle at a later date, or Qualcomm will focus on smaller parts of Intel. Qualcomm will not knock Intel in the PC market lightly. If you can’t beat them, buy them is a tried and true recipe in the tech industry.