Qualcomm is No Longer Considering Buying Intel: The reason is Huge Debts

The American technology corporation Qualcomm has given up on acquiring Intel, one of the largest processor manufacturers. According to Bloomberg sources, the reason for this decision was Intel's debts, which made the deal economically unfeasible.

Intel's Financial Situation

Rumors of a possible takeover of Intel by Qualcomm have been circulating for several months. However, according to Bloomberg, Qualcomm has decided to abandon the deal after a thorough review of Intel's financial statements and analysis of its rumored $50 billion in debt.

Qualcomm is Looking for Other Opportunities

The abandonment of the Intel deal does not mean that Qualcomm has completely abandoned its expansion strategy through mergers and acquisitions. The company is likely considering the acquisition of a separate Intel unit.

Market Impact

The news about the termination of negotiations caused a mixed reaction on the market. Intel shares fell by a few percent following the Bloomberg report, while Qualcomm remained stable. Analysts note that Intel's debt burden remains a serious problem that could scare other potential investors.

However, yesterday, Intel announced that it had agreed with the Biden-Harris administration to receive $7.83 billion in funding under the CHIPS Act, an initiative that the company has been disappointed with in the past as it has not received any assistance for several years.