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Intel reportedly eyeing Broadcom to thwart Qualcomm buyout

Intel is looking to nullify Broadcom's Qualcomm takeover efforts. (Source: Android Police)
Intel is looking to nullify Broadcom's Qualcomm takeover efforts. (Source: Android Police)
Intel is apparently viewing the possible acquisition of Qualcomm by Broadcom as a potential threat to its communications semiconductor business according to a report by The Wall Street Journal. The company is also reportedly exploring various fallback options in the event the Qualcomm takeover materializes.

Looks like Intel is not taking the recent developments in the Broadcom-Qualcomm hostilities lightly and is in fact, mulling to buyout Broadcom to thwart any competitive threats to its communications semiconductor plans. While Intel could not carve a niche for itself in the smartphone SoC space, conceding it to Qualcomm, the chipmaker has resolved to invest heavily in upcoming 5G technologies. Intel fears that Broadcom's hostile takeover of Qualcomm could dampen its spirit of being a major player in the 5G revolution.

If the Broadcom takeover of Qualcomm does indeed materialize, Intel is reportedly looking for potential buyout of the combined Broadcom company. The Wall Street Journal writes, "Intel is watching the takeover battle closely and is eager for Broadcom to fail [at acquiring Qualcomm] as the combined company would pose a serious competitive threat, the people said." The WSJ also reports that Intel could be looking at other options as well such as smaller acquisitions to remain competitive. Intel is reportedly considering a minimum pre-emptive price of US$109 billion for Broadcom to help prevent the merger.

Broadcom has been trying to acquire Qualcomm since last November for US$130 billion in what would have been the largest technology acquisition in history but Qualcomm has refused to budge thus far. To complicate matters, Qualcomm is fighting a costly legal dispute with Apple over patent royalties and on top of it, is in the process of acquiring NXP Semiconductor making matters a bit too complicated. Recently, the Committee on Foreign Investment in the US (CFIUS) has expressed concerns that Qualcomm's acquisition by Broadcom can ferry Qualcomm's lead in 5G technology to Chinese shores given Broadcom's ties with ZTE and Huawei, thus potentially compromising national security. Broadcom, however, is refuting these claims and is planning to redomicile to the US and offer to train US workers in order allay fears of regulatory bodies and the US Government. 

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 03 > Intel reportedly eyeing Broadcom to thwart Qualcomm buyout
Vaidyanathan Subramaniam, 2018-03-11 (Update: 2018-03-11)
Vaidyanathan Subramaniam
Vaidyanathan Subramaniam - News Editor
I am a cell and molecular biologist and computers have been an integral part of my life ever since I laid my hands on my first PC which was based on an Intel Celeron 266 MHz processor, 16 MB RAM and a modest 2 GB hard disk. Since then, I’ve seen my passion for technology evolve with the times. From traditional floppy based storage and running DOS commands for every other task, to the connected cloud and shared social experiences we take for granted today, I consider myself fortunate to have witnessed a sea change in the technology landscape. I honestly feel that the best is yet to come, when things like AI and cloud computing mature further. When I am not out finding the next big cure for cancer, I read and write about a lot of technology related stuff or go about ripping and re-assembling PCs and laptops.