[ad_1]
In a nutshell: We’ve not heard a lot about Qualcomm’s curiosity in buying Intel for the reason that first stories arrived in September, however it seems that the potential deal is not useless. Qualcomm is simply ready till after the US election earlier than deciding what to do.
As Intel struggles with a falling inventory value and income failing to fulfill expectations, there have been stories final month that Qualcomm had approached Chipzilla with an acquisition supply.
In keeping with folks acquainted with the matter who spoke to Bloomberg, Qualcomm has determined to attend till after the election earlier than deciding its subsequent transfer. Such an enormous deal would undoubtedly face intense scrutiny from regulators, each home and globally. The corporate desires to see how the subsequent administration’s insurance policies have an effect on elements that might impression the acquisition, akin to antitrust guidelines and US-China relations.
China is a vital marketplace for each Qualcomm and Intel. In the identical month that it first approached Intel, Qualcomm met with antitrust regulators in China to gauge any potential response to the deal. The corporate hasn’t obtained any suggestions from Chinese language authorities, who’re apparently ready to see if Qualcomm makes a proper supply for Intel.
Within the US, the place Intel is the important thing participant within the authorities’s plan to reignite the nation’s home chip manufacturing trade, White Home help for the deal could be essential.
Intel is ready to turn into the most important beneficiary of the Chips act, receiving $8.5 billion in grants in addition to $11 billion in low-interest loans, offered it proceeds with its manufacturing facility development plans. It has been six months for the reason that authorities introduced the award and Intel remains to be waiting for the funding. Qualcomm has been in discussions with US regulators and believes that an all-American merger may alleviate any issues, in line with the report.
The sources added that Qualcomm may wait till after the subsequent US president is inaugurated in January, 2025, earlier than deciding whether or not to proceed with the transaction.
Biding its time might be advantageous for Qualcomm. Intel will report its third-quarter earnings later this month. If it is one other disappointing quarter that causes the share value to fall even additional, a takeover deal may value Qualcomm much less cash. Analysts are predicting one other web loss in extra of $1 billion for Intel.
[ad_2]
Source
