A deal for Intel would be massive and come at a time when the chip maker is sputtering
Chip giant Qualcomm made a takeover approach to rival Intel in recent days, according to people familiar with the matter.
A deal for Intel, which had a market value of roughly $87 billion early Friday, would be massive and come as the chip maker has been suffering through one of the most significant crises in its five-decade history.
A deal is far from certain, the people cautioned. Even if Intel is receptive, a deal of that size is all but certain to attract antitrust scrutiny, though it is also possible it could be seen as an opportunity to strengthen the country’s competitive edge in chips. To get the deal done, Qualcomm QCOM -3.55% decrease; could intend to sell assets or parts of Intel to other buyers.
Intel—once the world’s most valuable chip company—has seen its shares drop roughly 60% so far this year. The company once had a market value of more than $290 billion at its peak. The stock rose 7% Friday after The Wall Street Journal reported the approach.
Shares in Qualcomm, which has a market value of around $185 billion, dropped around 4%.
Qualcomm is a leading supplier of chips for smartphones, including ones that manage communications between phones and cell towers. It is one of the most critical suppliers for Apple’s iPhones, among a range of other devices.
Credit: Wall Street Journal