Broadcom is continuing its efforts to try and acquire Qualcomm. Intel, on the other than, isn’t going to just sit around to see its competitor get taken over. The Wall Street Journal reports that sources familiar with the matter say Intel is considering a range of acquisition options in response to Broadcom’s bid to purchase Qualcomm.
Recently, both Broadcom and Qualcomm made moves to try and push the possible purchase through. Broadcom sent a letter to Congress saying that the takeover would not harm national security, and Qualcomm appointed an independent chairman. Intel appears to be closely watching the situation and wants Broadcom’s attempt to fail because the combined company would pose a serious threat to Intel, sources told WSJ.
Sources familiar with the matter have said that Intel is considering going after a possible purchase of Broadcom, should this merger fall through. It’s far from guaranteed that Intel would go down this route, but nonetheless, people familiar with the matter are saying that it may be a hit or miss due to the enormous size of such combination. Broadcom’s currently market value stands at around $104 billion. Another source told WSJ that Intel may possibly decide to go after smaller companies for acquisitions.
Should the deal between Broadcom and Qualcomm fall through, Intel’s attempt to try and acquire Broadcom would help the company add a host of smartphone chips, as well as Bluetooth and GPS components. Broadcom has a diverse line of equipment for networking and communications, so it would help Intel become more diverse and a bigger threat to Qualcomm.