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23rd of March 2018


Report: Intel Considers Buying Broadcom

Intel Generic Processor

If a Broadcom-Qualcomm merger becomes likely, Intel may intervene. It's reportedly considering a bid for Broadcom.

Intel has been watching Broadcom's hostile takeover of Qualcomm, knowing that a potential tie-up represents a "serious competitive threat," according to a new report from The Wall Street Journal, citing unnamed sources.

Intel is "eager" for the takeover attempt to fail, the report said. Nevertheless, the company has been preparing a range of fallback plans, including a possible acquisition of Broadcom itself.

On Friday, Intel declined to comment on the report. However, a company spokeswoman said it was still focusing on integrating two previous acquisitions, Mobileye and Altera, into Intel's business. Together, both those purchases cost the company over $30 billion.

A potential bid for Broadcom would surpass that amount; it has a market value of around $104 billion.

Broadcom hasn't commented on the report. Since November, the company has been trying to acquire Qualcomm, a major provider of smartphone chips and a key rival to Intel.

Qualcomm has been fighting the takeover attempt, saying Broadcom's offer of $117 billion is too low. Another potential roadblock is government regulation. The Treasury Department is worried a merger could dampen the US's competitive edge in wireless technologies, opening the door for China to lead in the sector.

Intel's opposition to the merger adds another wrinkle. The company's other fallback plans include making smaller acquisitions to compete with a combined Broadcom-Qualcomm, according to The Wall Street Journal.

In the meantime, Broadcom is trying to allay fears that a merger with Qualcomm poses a national security risk. On Friday, the company sent a letter to members of Congress, saying it'll work to ensure the US remains a leader in wireless technologies.

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