Qualcomm has given up the Intel acquisition!
Qualcomm may have given up on acquiring Intel or even part of the company. Some sources with behind-the-scenes access to the negotiations say that Qualcomm, known for its Snapdragon chips, has made a change of plan as it faces a number of obstacles in this regard. Here are the details
Why did Qualcomm abandon the Intel acquisition?
In addition to the financial stress on Qualcomm’s cash flow, the company also fears that the acquisition will be blocked by regulatory agencies in the US and other countries, sources said, according to Bloomberg.
Another major issue that may have definitely cooled the negotiations is Intel’s gross debt, which is said to be approaching $50 billion. These figures indicate a value almost half of Qualcomm’s value.
Market analysts commenting on the issue state that Qualcomm will need to perform a financial ‘miracle’ to sustain both itself and Intel’s business if it insists on the acquisition.
ARM cancels Qualcomm’s processor license!
Although Qualcomm has not yet commented on the issue, sources believe that the company will still insist on buying Intel’s chip manufacturing division. It is rumoured that the company does not want to rush for this acquisition at the moment.
This development may indicate that Qualcomm wants to follow a more independent path towards developing its own technologies. On the other hand, it is a matter of great curiosity how Intel’s impact on the market will be. The industry is closely monitoring the long-term relevance of this move.
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