Qualcomm 'lost interest' in Intel takeover because of the company's huge debts - Bloomberg

Qualcomm has reconsidered its plans to acquire Intel due to the company's financial troubles and potential regulatory hurdles.

Rumors about the acquisition surfaced when Intel reported "sluggish" performance and serious financial issues. Names like ARM, Apple, and Samsung were mentioned as potential buyers, but Qualcomm seemed to show the most interest.

Now, Bloomberg reports that Qualcomm has halted talks regarding a "full acquisition," but might consider purchasing individual divisions instead. The reason is that Intel is rumored to have amassed a debt of $50 billion—nearly half of its value—meaning Qualcomm would need to rely on a financial miracle to sustain both itself and its business post-acquisition. Another hurdle is that transactions of this magnitude require regulatory approval, which could take several months and lead to various legal complications.

"It's clear that the San Diego chipmaker has realized its ambitions for a complete takeover of Intel may be challenging, so the company is now considering acquiring a 'component' of Intel’s business—likely its semiconductor division," Bloomberg writes.

Meanwhile, Intel announced yesterday that it has reached an agreement with the Biden-Harris administration for direct funding of $7.83 billion under the CHIPS Act. Previously, the company expressed disappointment with this initiative, as it had received no assistance over the past two years.