Apple mulled buying Intel’s 5G business; showing openness to big deals

“Apple Inc. held talks with Intel Corp. about acquiring parts of its smartphone-modem chip business, according to people familiar with the matter, a potential multibillion-dollar deal that would accelerate the iPhone maker’s efforts to develop wireless technology for its devices,” Tripp Mickle, Cara Lombardo and Dana Cimilluca report for The Wall Street Journal.
“The talks started around last summer and continued for months before halting recently, around the time Apple reached a multiyear supply agreement for modems from Intel rival Qualcomm Inc., some of the people said,” Mickle, Lombardo and Cimilluca report. “Intel is now exploring strategic alternatives for its modem chip business, including a possible sale — to Apple or another acquirer, the people said. It has already received expressions of interest from a number of parties and has hired Goldman Sachs Group Inc. to manage the process, which is in an early stage.”
“The Intel-Apple talks, which haven’t been previously reported, reflect growing openness by the iPhone maker toward the idea of big acquisitions, people familiar with the company’s operations said,” Mickle, Lombardo and Cimilluca report. “Apple is more open to large and transformative deals than at any point in its history, according to one of the people familiar with the company’s operations.”
Read more in the full article here.
MacDailyNews Take: As we reported on April 4, 2019:
A little birdie tells us that “a major Apple acquisition looms,” but that “it’s not yet a done deal.” If it goes through, however, “people will be shocked.” No further information was given. We’re unsure if “people will be shocked” at the name of company Apple may acquire, the size of the acquisition, both, and/or something else altogether.
Apple reports Q219 earnings on Tuesday, April 30, 2019 after market close, right around 4:30pm EDT. Traditionally, Apple updates investors on the company’s capital return program – buybacks and dividends – at that time.
Apple plans “to become approximately net cash neutral over time,” in the words of CFO Luca Maestri in February 2018. Apple currently has north of $245 billion cash on hand. In other words, the sky’s the limit!
Stay tuned.
SEE ALSO:
Major Apple acquisition looms; ‘people will be shocked’ – April 4, 2019