Serving tech lovers for over 25 years.
TechSpot implies tech analysis and guidance you can rely on
In a nutshell: We have not heard much about Qualcomm’s interest in getting Intel because the very first reports gotten here in September, however it appears that the prospective offer isn’t dead. Qualcomm is simply waiting till after the United States election before choosing what to do.
As Intel battles with a falling stock cost and profits stopping working to satisfy expectations, there were reports last month that Qualcomm had approached Chipzilla with an acquisition deal.
According to individuals knowledgeable about the matter who talked to BloombergQualcomm has actually chosen to wait up until after the election before choosing its next relocation. Such a huge offer would certainly deal with extreme examination from regulators, both domestic and worldwide. The business wishes to see how the next administration’s policies impact elements that might affect the acquisition, such as antitrust guidelines and US-China relations.
China is an essential market for both Qualcomm and Intel. In the very same month that it initially approached Intel, Qualcomm consulted with antitrust regulators in China to determine any prospective reaction to the offer. The business hasn’t gotten any feedback from Chinese authorities, who are obviously waiting to see if Qualcomm makes an official deal for Intel.
Intel’s YTD stock cost
In the United States, where Intel is the essential gamer in the federal government’s strategy to reignite the nation’s domestic chip production market, White House assistance for the offer would be essential.
Intel is set to end up being the most significant recipient of the Chips act, getting $8.5 billion in grants along with $11 billion in low-interest loans, offered it continues with its factory building and construction strategies. It’s been 6 months given that the federal government revealed the award and Intel is still waiting for the financing. Qualcomm has actually remained in conversations with United States regulators and thinks that an all-American merger might reduce any issues, according to the report.
The sources included that Qualcomm might wait till after the next United States president is inaugurated in January, 2025, before choosing whether to continue with the deal.
Biding its time might be useful for Qualcomm. Intel will report its third-quarter revenues later on this month. If it’s another frustrating quarter that triggers the share cost to fall even further, a takeover offer might cost Qualcomm less cash. Experts are forecasting another bottom line in excess of $1 billion for Intel.