Qualcomm has recently approached Intel with a potential takeover proposal.
According to a source on Friday, Qualcomm has reached out to Intel in recent days to discuss a possible acquisition of the struggling chipmaker.
This might be a game-changing agreement for the industry, but there are a lot of obstacles to overcome.
The individual knowledgeable on the subject said that Cristiano Amon, the CEO, is actively participating in the talks to purchase the fifty-year-old Intel.
According to a second source with knowledge of the matter, Amon has been aggressively exploring other possibilities for a transaction for the business.
Reuters revealed earlier this month that Qualcomm looked into buying some of Intel's design division, with its PC design unit being of special interest. Executives from Qualcomm were looking over Intel's whole line of operations.
The talks with Intel are still in the early phases. A third individual familiar with the situation claims that the San Diego-based company has not submitted a formal offer for Intel.
Since the conversations are private, the sources asked to remain anonymous.
Intel opted not to respond.
An inquiry for comment from Reuters was not immediately answered by Qualcomm.
Qualcomm's stock dropped 2.9%, while Intel's finished 3.3% higher.
It’s attempt coincides with a vulnerable period for Intel, the world's most valuable chipmaker before its shares plummeted by around 60% since the year's beginning.
