Intel Mulls Possible Defensive Bid for Broadcom

Intel Mulls Possible Defensive Bid for Broadcom

Foto: Fotolia

Intel is considering a bid for Broadcom as part of a range of acquisition alternatives in reaction to their bid for Qualcomm, the Wall Street Journal reported, according to Bloomberg.

Intel, the world’s second-largest semiconductor maker, is keeping a close eye on the $117 billion takeover battle and is eager for Broadcom to fail, because the combined company would pose a competitive threat, the Journal reported. If Broadcom seems set to prevail, Intel could step in with its own offer, the newspaper reported. Intel has been considering such a move since late last year and is working with advisers, according to the Journal.

While Intel isn’t ruling out an eventual approach to Broadcom, there are no takeover discussions under way, and that outcome isn’t the most likely one, according to a person with knowledge of the matter. The report cautioned it’s far from guaranteed that Intel would make an offer and that it could pursue smaller acquisitions instead.

Broadcom currently has a market value of about $104 billion. Its offer for Qualcomm has been met with resistance, not only from Qualcomm executives but also from the U.S. government, which has initiated a review on national security concerns.

Representatives of Broadcom didn’t immediately respond to a request for comment. An Intel spokeswoman declined to comment on merger prospects but said the company’s priority is integrating existing acquisitions. “We have made important acquisitions over the past 30 months, including Mobileye and Altera, and our focus is on integrating those acquisitions and making them successful for our customers and shareholders,” Intel said.

A combined Broadcom and Intel would leave customers such as Apple purchasing more components from a single source. Apple, locked in a dispute with Qualcomm over licensing fees, has been working to strip Qualcomm chips from future devices. Intel receives just over 5 percent of its sales from Apple, compared with about 7 percent for Broadcom.

More from category

Microsoft Will Deliver Intelligent Cloud from Norway Datacenters

Microsoft Will Deliver Intelligent Cloud from Norway Datacenters

25 Jun 2018 comment

Microsoft announced plans to further expand its significant and growing investment in cloud computing in Europe by delivering the intelligent Microsoft Cloud from two new datacenter regions in Norway.

Samsung NEXT Strengthens Commitment to AI Startups

Samsung NEXT Strengthens Commitment to AI Startups

24 Jun 2018 comment

Samsung NEXT, the group helping to transform Samsung by working with entrepreneurs and innovators to build, grow and scale software and services, announced Samsung NEXT Q Fund to help enable the full potential of AI’s future.

Bosch Building Technologies Invests in the Israeli Start-up AnyVision

Bosch Building Technologies Invests in the Israeli Start-up AnyVision

24 Jun 2018 comment

The Bosch Building Technologies division is partnering with AnyVision Interactive and acquiring a 9 percent stake in the Israeli AI-based person- and object-recognition start-up.