Informed sources said that Intel is paying close attention to Broadcom and Qualcomm's acquisition battle and hopes to see Broadcom's acquisition fail because the combined company will pose a serious competitive threat to Intel. If Broadcom seems likely to win, Intel may intervene. , Proposing a bid for Broadcom.
After the release of this report, Intel's stock price fell 1% in after-hours trading. Broadcom's stock price rose more than 6%. Qualcomm's stock price has remained basically unchanged.
Informed sources said that since the end of last year, Intel has been considering this acquisition plan and cooperated with company consultants. It is still difficult to guarantee that Intel finally decided to do so, and some insiders said that this is unlikely because of this kind of merger transaction. The size and complexity will be enormous. Intel may also eventually decide to implement other small-scale acquisition transactions.
An Intel spokesperson stated that the company will not comment on the deal rumor. 'That being said, we have implemented several important acquisitions over the past 30 months, including the acquisition of automated assisted technology provider Mobileye, a chip manufacturer Altera, and our The focus is to integrate these acquisitions to benefit our customers and shareholders,' she said in a statement.
Broadcom hasn't commented yet.
Intel's evaluation of the acquisition transaction has led to a new episode in the acquisition battle between Broadcom and Qualcomm. Broadcom has launched a hostile takeover battle against Qualcomm for several months. This transaction will reshuffle the semiconductor industry, and other Intel and other companies. The company has a major impact.
Intel and Qualcomm are two highly competitive rivals. Intel has been weakening Qualcomm’s dominant position in the wireless device chip field and competing for Apple’s baseband chip orders. Qualcomm and Apple are currently working on Thin Gongtang. Once Broadcom has successfully acquired Qualcomm, then Its relationship with Apple may ease, or cause Intel to win more Apple orders.
As of Friday, the market value of Broadcom was 109 billion U.S. dollars. This means that once Intel acquires Broadcom, it will become one of the largest acquisitions in history.
However, Broadcom's acquisition of Qualcomm is in danger. Broadcom may now have to abandon the acquisition and make a comeback in the future. The U.S. Foreign Investment Committee has expressed concerns about Broadcom’s acquisition and ordered Qualcomm to postpone the time for the shareholders’ meeting. In order to enable them to conduct a comprehensive review of Broadcom's proposal. For a transaction that has not yet been formally announced, the investigation by the Committee on Foreign Investment in the United States is unprecedented.
Broadcom is also taking steps to ease U.S. government concerns, including investing 1.5 billion U.S. dollars to ensure U.S. leadership in 5G technology. Qualcomm announced yesterday that it will cancel the executive chairmanship and appoint non-executive chairman.