Intel Reportedly Eyes Broadcom Purchase If Hostile Qualcomm Bid Is Successful
If Broadcom can convince U.S. regulators that it should be allowed to purchase Qualcomm, an even bigger fish is standing by possibly ready to gobble up Broadcom. A report that started with the Wall Street Journal is making the rounds that claims chip giant Intel is eyeing an acquisition option that would see it purchase Broadcom according to sources claiming to be familiar with the matter.
Intel issued a statement via a spokeswoman stating it would offer no information on a potential purchase. The Intel spokeswoman said, "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."
Sources claiming to be familiar with Intel's plans have stressed that an offer to buy Broadcom is not guaranteed, with at least one unnamed source cited as saying that a Broadcom bid is unlikely. The big question here is if Broadcom can even complete the acquisition of Qualcomm that is allegedly the key to any potential Intel offer.
Regulators in the U.S. would undoubtedly ask for industry input before approving a Broadcom and Qualcomm deal, and word is that many in the tech world are against a deal. Microsoft and Google are concerned about the deal according to sources. One concern reportedly raised is that Broadcom has a reputation for focusing on cost-cutting rather than investment in new technology.