Qualcomm (QCOM, Financials) is reportedly less inclined to pursue a potential acquisition of Intel (INTC, Financials), according to sources cited by Bloomberg; INTC and QCOM are both down in Tuesday's early morning trading.
Although the action would have been among the biggest takeovers in the technology sector, it would have faced operational complexity and major regulatory challenges, as per the report.
Qualcomm may still investigate purchasing certain areas of Intel's business or review the prospect of a larger merger down the road, according to sources.
The possible purchase would have put Qualcomm in a significant financial bind as it would have had to assume debt of more than $50 billion for Intel. According to reports, the businesses started talking in September; Qualcomm had already looked at buying Intel's chip design division.
Instead, Qualcomm now emphasizes natural expansion. By 2029 the corporation wants Internet of Things and automotive segments to bring in $22 billion annually.
“At this time, we have not identified any large acquisition that is necessary for us to execute on this $22 billion,” Qualcomm CEO Cristiano Amon said in a Bloomberg Television interview.
