Could Intel be bought out by one of its closest competitors?
In turmoil since the beginning of the year, Intel is in the news more than ever. The American microprocessor giant has had one setback after another, and to get out of the rut, its CEO has put in place what looks like a rescue plan. In particular, it has been specified that more or less 15,000 employees will be made redundant before the end of 2024. Intel also plans to sell off its Altea division, purchased in 2015 for the modest sum of $16.7 billion. Lastly, the American firm's board of directors is planning to reorganize Intel Foundry, its loss-making foundry division, into an independent entity, albeit still integrated into the group. Intel Foundry is to have its own board of directors and present its financial results on its own. Will such measures be enough? Only time will tell, but they should result in 10 billion in savings by next year.
Qualcomm
However, another "solution" is conceivable. It's still just a rumor, but relayed by the very serious Wall Street Journal, it makes Intel the prey of another microprocessor giant, Qualcomm. While Intel is now valued at "only" $90 billion (compared with $290 billion four years ago), Qualcomm is estimated to be worth $185 billion. More importantly, the company led by Cristiano Amon is on a roll. Its Snapdragon processors are ultra-dominant in the smartphone market, and are beginning to make inroads into the world of PCs, especially laptops. According to the Wall Street Journal, Qualcomm has approached Intel to consider possible takeover options. If Cristiano Amon's firm were to acquire Pat Gelsinger's company, it would undoubtedly be the largest acquisition in the sector, surpassing the $67 billion spent by Dell to buy EMC Corporation in 2016 and the $68.7 billion committed by Microsoft to buy Activision Blizzard.
Of course, nothing has been finalized yet, and the information unveiled by the Wall Street Journal does not specify, for example, whether Qualcomm is interested in all of Intel's activities. Perhaps the company behind Snapdragon is more interested in the R&D teams or the Intel Foundry entity? We'll have to wait and see, but one thing's for sure: the particularly complex Intel dossier is not over yet.
