The announcement that Intel Corporation (NASDAQ:INTC) is making a consideration to buy Broadcom Ltd (NASDAQ:AVGO) which is valued at more than $100 billion has proven the extent to which the giant company feels threatened by the potential merger between Qualcomm and Broadcom.
According to reliable sources, Intel has looking for options to have Broadcom stall the company’s $117 billion offers to Qualcomm Inc. (NASDAQ:QCOM) in the biggest ever technological companies deals since the last financial year
With the aim of derailing the deal, this has been seen as a true worry to the Intel Company because out of the deal, it is expected that a possible 3rd largest chip company in terms of revenue is likely to emerge after Samsung and Intel.
The Broadcom-Qualcomm deal will merge the market leading smartphone chips with a stronger data centers presence in the two areas the Techno-giant has been targeting for growth.
According to some analysts, a combined effort would result to a powerhouse which is likely to power up against any powerful leader ahead of them. Broadcom and Qualcomm’s combined revenues would be more powerful than Intel’s revenues.
Some have criticized the speculations citing that the merger between Intel and Broadcom is unnecessary because this is not going to add any value to Intel’s strength. Besides, Broadcom products would not be able to correctly match Intel’s operations.
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The speculations broadly bring out the fact that Intel has felt the upcoming forces and if achieved, the deal could go way above to help in the reshaping of the semi-conductor industry because chips will be able to make their way into industrial products and consumers.
Intel-Broadcom merger has however been termed as not possible because Intel over the period has been weighing a series of other acquisitions. Besides, Broadcom’s offer would present a number of challenges for the tech-giant.
Intel over its operational period has been able to make a number of big deals with its largest breakthrough being in 2015 when the company acquired Altera Corporation which was valued at $16.7 billion.
Intel has insinuated that its primary focus at the moment is to focus on integration of its recent acquisitions and be able to make a profitable turnaround for the benefit of its customers and its shareholders.