Scalper1 News
Intel (INTC) needs to make an acquisition to speed the growth of its mobile chip business and MediaTek of Taiwan would be the best target, RBC Capital Markets analyst Doug Freedman said in a research report Wednesday. Intel would create more shareholder value by purchasing mobile market share as opposed to its current strategy of organic growth, Freedman said in his build-vs.-buy analysis. If Intel can get to 30% market share in mobile chips in seven years, a buy scenario would create $27 billion in shareholder value vs. $13 billion in an organic build scenario, Freedman said. MediaTek is one of the few viable acquisition candidates based on demonstrated market share success, he said. If Intel bought MediaTek, it would gain about 16% market share in the smartphone and tablet system-on-a-chip (SoC) market, with MediaTek’s revenue mainly in smartphones, Freedman said. Intel currently has a 4% market share in mobile… Scalper1 News
Scalper1 News