Chipmaker Qualcomm weighs friendly takeover of Intel

Qualcomm Inc has approached Intel Corp to discuss a potential acquisition of the struggling chipmaker, a person with knowledge of the matter said, raising the prospect of one of the biggest-ever M&A deals.

California-based Qualcomm proposed a friendly takeover for Intel in recent days, according to the person, who asked not to be identified discussing confidential information.

The approach is for all of the chipmaker, though Qualcomm hasn't ruled out buying or selling parts of Intel in a combination. It's uncertain if the initial move will lead to an agreement and any deal is likely to come under close antitrust scrutiny. Qualcomm has been speaking with US regulators and believes an all-American combination could allay any concerns, the person said.


Qualcomm is looking at Intel at a time when its smaller rival is in the midst of the most difficult period in its 56-year history.

Under chief executive officer Pat Gelsinger, Intel is working on a plan to reshape the company and revive its flagging share price. He still believes the turnaround plan could be sufficient to remain an independent company, the person said. Intel's shares have fallen about 37% over the past 12 months, giving it a market value of about $93 billion.

Qualcomm's stock has risen more than 50% over the same period for a market capitalisation of about $188 billion. At such values, any deal between Qualcomm and all of Intel would rank among the largest on record, Bloomberg-compiled data show.

The Wall Street Journal reported Qualcomm's interest on Friday, driving Intel's shares up by more than 3%. Representatives for Qualcomm and Intel declined to comment.

Intel is headed toward its third consecutive year of shrinking sales, estimated to make $52 billion in revenue in 2024.