Intel?s recent acquisition binge has been enormous?they?ve spent almost $10 billion in the past month on TI?s cable modem division, security software maker McAfee, and Infineon?s Wireless Solutions (WLS) business.
At last week?s Intel Developer Forum, CEO Paul Otellini talked about this massive acquisition spree like it?s predestined to succeed. But if we peel the onion back on time, Intel?s pitiful M&A track record suggests this couldn?t be further from the truth.
Between 1999-2003, Intel spent over $11 billion buying about 40 companies, and the vast majority of these acquisitions failed. In fact, of the 15 largest acquisitions in its history, Intel has shut down or sold off the acquired products in every single case (aside from Wind River which is too recent to include).
