In a significant development, beleaguered Intel has received a major investment offer from US asset management company Apollo Global Management. According to reports, Apollo is willing to invest up to $5 billion into Intel.
Intel’s executives are weighing the proposal, and talks regarding the deal are in the early stages. The size of Apollo’s investment could change, and there is no guarantee that the deal will go through. However, Apollo’s previous relationship with Intel increases the likelihood of the investment. The firm had earlier agreed to acquire a 49% equity interest in a joint venture that controls Intel’s new manufacturing plant in Ireland.
The news comes at a tumultuous time for Intel. The company has implemented a cost-reduction plan, which includes laying off more than 15% of its employees. Operational expenses are also being cut, and the struggling foundry division is being split into an independent subsidiary.
Last weekend saw reports that rival tech giant Qualcomm had made a takeover offer for Intel. However, the potential investment from Apollo has pushed Intel’s shares up 2%. CEO Pat Gelsinger’s announcement of a deal with Amazon Web Services to co-invest in a custom AI semiconductor also boosted the shares.
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