For the first time since 2007, Intel Extreme Masters may change its title sponsor. Intel's stock has fallen 40% over the past year, and after the announcement of its latest fiscal quarter results, it dropped 30% in one day. This led to mass layoffs of 15,000 employees and the suspension of several major projects. The main reason for the crisis is bugs in the 13th and 14th generation processors, which caused many devices to fail.
Intel crisis backstory
Intel's problems stemmed from the release of low-quality processors, which undermined the company's credibility. As a result, its market value has fallen to $93 billion, even though its stock has fallen nearly 40% over the past year, and after announcing its latest fiscal quarter results, the stock fell 30% in a single day.
Meanwhile, Qualcomm, whose market value is $169 billion. Qualcomm is rumored to have offered to buy out Intel entirely, which would lead to a change in the title sponsor of the Intel Extreme Masters tournament, but it all depends on Intel's response.
Financial problems and massive layoffs
In early August, Intel reported a quarterly loss of $1.6 billion, which prompted massive layoffs - the company laid off 15,000 employees and froze construction of new plants in Germany and Poland. These measures were taken to reduce losses but failed to drastically improve the situation.
Possible implications for esports
If Qualcomm finalizes its purchase of Intel, it will change the name of the IEM tournament, but it won't stop being held. The tournament will continue to be an important event in esports, only now under the new Qualcomm Extreme Masters brand, or under the name of Intel's direct competitor AMD, or ESL will be able to find another title sponsor for their Extreme Masters series of tournaments while maintaining their high status on the international stage.
Source: New York Times
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