An Intel-MediaTek Deal Makes Sense, But is Not Likely

An outright takeover of MediaTek by Intel to give Intel a fighting chance in the mobile market is likely to occur in the next two-to-three years, if one analyst’s prediction is to be believed. RBC Capital Markets Analyst Doug Freedman said in a research report released Wednesday that such a deal will happen as Intel struggles to organically increase its mobile market penetration organically while increasing shareholder value. For Intel, an acquisition of MediaTek — which doubled its baseband chip revenue between 2007 and 2013 from 7.3% to 14.4% — would give Intel a 30% market share within seven years compared to the 4% slice