Qualcomm has reconsidered buying Intel amid the company’s financial troubles and potential regulatory hurdles.
Rumors of acquisition have been circulating since Intel reported “sluggish” performance and a tough financial situation. Among potential buyers, names like ARM, Apple, and Samsung were mentioned, however, Qualcomm seemed to show the most interest.
Now, Bloomberg reports that Qualcomm has halted talks about a “complete takeover,” but might be able to purchase individual divisions. The reason being that Intel, reportedly, has accumulated a debt of $50 billion — nearly half of own value. Another obstacle is that such a large-scale deal would require regulatory approval, which could potentially take several months and lead to a series of legal issues.
“Clearly, the chipmaker from San Diego realized that its ambitions for a complete acquisition of Intel might be challenging, so the company is now considering purchasing an ‘element’ of Intel’s business — likely a semiconductor manufacturing division,” writes Bloomberg.
Meanwhile, yesterday Intel announced that it had reached an agreement with the Biden-Harris administration regarding receiving direct funding in the amount of $7.83 billion — as part of the CHIPS Act. Previously, the company stated that it was disappointed with this initiative, as it had received no assistance over two years.