Details of Qualcomm's deal to buy Intel still up in the air

According to CCTV Finance citing The Wall Street Journal (WSJ) on Sept. 20, U.S. chipmaker Qualcomm has recently been in discussions with Intel regarding a potential acquisition.This marks the second time this month that media outlets have reported Qualcomm's interest in acquiring Intel.

Earlier in the month, Reuters reported that Qualcomm's management was considering purchasing Intel's chip design operations to enhance its product lineup, as well as other Intel businesses including servers. Following these reports, representatives from both Intel and Qualcomm declined to comment on the acquisition talks.

The news had an immediate impact on the stock market on Sept. 20, with the share prices of the two companies moving in opposite directions. Intel's stock price surged by more than 8% at one point, while Qualcomm's fell by over 5%, narrowing slightly by the close of trading.

WSJ reported that the details of the transaction are still far from being finalized, and the specific acquisition price remains unclear. Even if Intel accepts Qualcomm's offer, such a large-scale transaction would likely trigger antitrust reviews from multiple governments and the European Union. If the deal goes through, Qualcomm might sell off some of Intel's assets to other companies.

Intel, once the world's largest chip manufacturer, has been in a downward spiral in recent years, now facing the risk of being delisted from one of the major New York stock indices, the Dow Jones Industrial Average (DJIA). According to Reuters, Intel's stock has fallen by approximately 57% this year, making it the worst performer in DJIA.

In August, following the release of disappointing financial results, Intel's stock plummeted by more than 26% in a single day, marking the largest one-day drop in over 50 years.

Alongside this financial report, Intel announced it would lay off 15,000 employees, about 10% of its workforce, and suspend dividends starting from the fourth quarter of this year.

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