Intel reportedly eyeing Broadcom to thwart Qualcomm buyout

Intel Plays Down Report of Interest in Broadcom Acquisition

Intel Plays Down Report of Interest in Broadcom Acquisition

A Wall Street Journal report last Friday cited the usual anonymous people with knowledge of the deal as having heard Intel has discussed it might need to take the role of apex predator rather than let Broadcom swallow Qualcomm. But when it comes to Intel, it is believed that the combination of Qualcomm and Broadcom would pose a serious threat to the same company, since although it no longer develops SoCs for smartphones, it continues to manufacture other extremely important and beneficial components. However, as has been known in recent hours, Some Sources has leaked that the giant Intel is studying the possibility of buying Broadcom, all this assuming that the acquisition of Qualcomm by this firm, finally come to good port.

Such a deal would cost Intel, which has a market capitalization of about $244 billion, more than Broadcom's market cap of $1o4 billion.

Broadcom first telegraphed its intention to acquire significantly larger competitor Qualcomm in late 2017 with an unsolicited bid worth, at the time, almost £100 billion.

If Broadcom buys Qualcomm, Intel would face a much bigger competitor, almost equal to itself in market heft. An Intel spokeswoman declined to comment on merger prospects but said the company's priority is integrating existing acquisitions.

Intel has been considering such a move since late a year ago and is working with advisers, said the WSJ report. Another source told WSJ that Intel may possibly decide to go after smaller companies for acquisitions.

Intel previous year finished second in global semiconductor sales with revenue of $62.8 billion.

Back in November, Broadcom attempted to purchase Qualcomm, in what would be the single largest takeover of a chipmaker ever.

In a letter sent to the boards of both Broadcom and Qualcomm, CFIUS warns the government often probes companies that it thinks may pose a risk to U.S. infrastructure.

If Broadcom can convince USA regulators that it should be allowed to purchase Qualcomm, an even bigger fish is standing by possibly ready to gobble up Broadcom.

Its offer for Qualcomm has been met with resistance, not only from Qualcomm executives, but also from the USA government, which has initiated a review on national security concerns.

Broadcom is pressing ahead, vowing to cooperate with the United States review and pledging to boost investment in U.S. wireless technology to offset concerns that it would slash spending and allow foreign companies to steal the lead in the next generation of mobile technology.

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Representatives of Broadcom didn't immediately respond to a request for comment.

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