Semiconductor company Qualcomm seems to be starting to hesitate to buy Intel
Qualcomm cancels Intel purchase due to the company's poor performance.
A recent report from Bloomberg indicates that Qualcomm seems to be retreating from its plan to buy Intel, or at least the frequency of their discussions has decreased. Previously, Qualcomm mentioned that they were in talks with Intel, but now it seems that those conversations are no longer as active as before.
Although there is no clear explanation for why this intention has waned, there are signs that Qualcomm is beginning to realize that Intel's financial condition is much worse than anticipated. Intel reportedly has a debt of $50 billion, which is nearly half the value of Qualcomm. Therefore, in order to survive, Qualcomm has to work hard to revive Intel's business post-acquisition.
Not only that, but a merger like this could also pose issues due to signs of monopoly. So, now Qualcomm seems to be proposing to buy just one of Intel's divisions instead of the entire company.
It is no secret that Intel has been facing financial difficulties lately. A few months ago, they even decided to lay off thousands of employees. Moreover, there are serious issues with their 13th and 14th generation processors.
Additionally, sales of their graphics card division have also not been very good. It seems that Intel's future does not show signs of recovery in the near term.
