Investing.com-- Qualcomm Incorporated (NASDAQ:QCOM) is reconsidering its interest in pursuing a takeover of beleaguered chipmaker Intel Corporation (NASDAQ:INTC), Bloomberg reported on Monday, amid concerns over the complexities of a potential deal.
Reports earlier this year suggested Qualcomm was considering a bid for Intel, especially after the latter’s shares fell sharply in value as it flagged increased headwinds. Any potential deal would have been one of the biggest tech mergers ever seen, but would have also been subject to high levels of regulatory scrutiny.
Bloomberg reported on Monday that the complexities associated with a potential acquisition had dulled Qualcomm’s interest in a deal.
The Bloomberg report follows a New York Times (NYSE:NYT) report that the U.S. government had decided to cut its grant for Intel under the CHIPs Act to less than $8 billion from $8.5 billion.
The cut came after Intel delayed plans to build a chip facility in Ohio to the end of the decade from initial plans of 2025. The chipmaker- once the largest in the world- is grappling with dwindling finances, as it lags rivals such as TSMC (NYSE:TSM) and NVIDIA Corporation (NASDAQ:NVDA) in capitalizing on the artificial intelligence boom.
Intel recently clocked a record-high quarterly loss and said it was rapidly losing cash.