Qualcomm eyes Intel acquisition in potential record deal: WSJ
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The news: Chipmaker Qualcomm has in recent days approached rival Intel for a potential acquisition, The Wall Street Journal reported citing sources familiar with the matter.
The San Diego-based chipmaker has proposed a friendly takeover of the struggling Intel, though it's unclear if an agreement will be reached.
The context: A deal could face significant antitrust challenges. But if it proceeds, it would become the biggest US takeover approach since Singapore-based Broadcom sought to buy Qualcomm for USD142 billion in 2018.
The approach is under regulatory scrutiny, and Qualcomm is engaging with US regulators to address concerns, presenting the deal as an all-American combination, sources told Bloomberg.
Qualcomm CEO Cristiano Amon is actively involved in the talks, and has been examining various options including acquiring both the entire company and specific parts, Reuters reported.
The numbers: Intel, facing a 37% share price drop over the past year, is valued at around USD93 billion ($136.6 billion), while Qualcomm's market cap has risen to USD188 billion.
Following the WSJ report on Friday, Intel shares closed up 3.31%, while Qualcomm stock ended down 2.87%.
Both Qualcomm and Intel declined to comment to the WSJ.
The sources: The Wall Street Journal , Bloomberg, Reuters
