Qualcomm and Broadcom make moves as the merger saga continues



Intel Corp.is considering a bid for Broadcom Ltd.as part of a range of acquisition alternatives in reaction to the Singapore-based chipmaker's bid for USA rival Qualcomm Inc., the Wall Street Journal reported, citing people familiar with the matter.

And in a further twist to an increasingly complex bid it's been suggested that Intel is looking to buy Broadcom should it succeed in its bid to acquire Qualcomm, as its concerned about the competitive threat posed by a Broadcom-Qualcomm combination.

The report, citing anonymous sources, says that Intel has been considering the acquisition since late a year ago, adding that the chipmaker might purchase Broadcom regardless of whether it succeeds in acquiring Qualcomm. Broadcom now has a market value of about $104 billion. The purchase has been on the discussion table for Intel since past year, and according to the Journal, Intel is working with advisers to see if the purchase makes sense.

Intel is eyeing acquisitions to remain perched at the top of the semiconductor industry, deals that would pave ways for the tech titan to reshape the fast-consolidating sector to its liking, according to a published report on Friday. What's more, Broadcom's products could both complement Intel's and provide the solid presence in mobile chips that has largely escaped Intel, whose heritage is personal computers and whose business remains centered on PCs and computer servers.

Maxine Waters Complains About Trump's Name-Calling, Labels Him 'Con Man Don'
Although Waters shared why she thinks Trump will be impeached, the president did not explain why he thinks Waters has a low IQ. Nevertheless, low IQ scores were frequently used as a justification for sterilizing and incarcerating people".

Broadcom said USA national security concerns are not a risk to the closure of the proposed buyout as it never planned to acquire the company before it completes redomiciliation. Broadcom has nominated six directors for election to Qualcomm's 11-member board as a way to force negotiations between the two companies. "That being said, 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", the company said.

While a new vote has been scheduled for April 5, a review by the Committee on Foreign Investment in the U.S.is likely to take longer. Vetr upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $269.37 price objective for the company in a research report on Thursday, January 25th. The Treasury Department is anxious a merger could dampen the US's competitive edge in wireless technologies, opening the door for China to lead in the sector.

Broadcom is a leader in the chips that control Bluetooth connectivity and link mobile phones and other devices to Wi-Fi networks. Citing unnamed sources, the Journal also said that the deal may also not happen as it will be too enormous and complex to figure out.

Get Data Sheet, Fortune's technology newsletter.

Latest News