The Dysfunctional Triangle of Intel, Broadcom and Qualcomm

Intel may intervene in Broadcom’s attempt to takeover Qualcomm the Wall Street Journal reported Friday. Intel, the world’s number one chipmaker fears a combined Qualcomm-Broadcom, as dysfunctional as that marriage maybe according to $QCOM poses a threat to $INTC’s dominance.


Intel is considering its options and WSJ reports they are considering a giant bid for Broadcom. While the takeover buyout is looking increasingly doubtful after the federal probe into the deal by the Committee on Foreign Investment saying it is troubled about Broadcom’s relationships with foreign entities. Not the best answer just after the United States launched steel and aluminum tariffs this past week.

Should it appear Broadcom is likely to win the Qualcomm deal, WSJ offers that Intel could step in with its own offer for Broadcom, which currently has a market value of about $104 billion, the Journal said. Insiders also told WSJ that Intel may decide to make other, smaller acquisitions if such an event transpires. All sorts of variations are possible, with the structure and parameters being determined by the various combatants and suitors, not to mention regulators.

Intel Corp. is considering a range of acquisition alternatives in reaction to Broadcom Ltd.’s hostile pursuit for Qualcomm Inc. that could include a bid for Broadcom, according to people familiar with the matter. Intel is watching the takeover battle closely and is eager for Broadcom to fail as the combined company would pose a serious competitive threat, the people said. If it becomes apparent that Broadcom is likely to prevail, Intel could step in with its own offer for Broadcom, the people said. By Dana Mattioli and Dana Cimilluca at WSJ

State of The Market After The Report

Intel Corp

  • NASDAQ: INTC · March 9, Close $52.19 ▲ 1.45 (2.86%)
  • After Hours 51.83▼ 0.36 (-0.69%)

Broadcom Ltd

  • NASDAQ: AVGO · March 9, Close $253.78 ▲ 6.83 (2.77%)
  • After Hours 262.30▲ 8.52 (+3.36%)

Qualcomm Inc

  • NASDAQ: QCOM · March 9, Close $63.03 ▲ 1.21 (1.96%)
  • After Hours 62.81▼ 0.22 (-0.35%)

Intel when approached by various news agencies said it doesn’t comment on speculation. However they did note it has made acquisitions like Mobileye and Altera and is in the process of integrating them. On Friday, in a day where the NASDAQ composite index hit another all time high after a strong US jobs report shares of Broadcom surged 5.2% to 267.01 at one part in after-hours trading. 

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