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Apollo Global Management Inc. has reportedly proposed investing up to $5 billion in struggling tech company Intel Corp.
According to an exclusive Bloomberg report, Intel executives are considering Apollo’s multi-billion investment proposal, which would equate to over 5% of Intel’s outstanding share capital. This potential deal follows Apollo’s earlier acquisition of a 49% stake in Intel’s foundry business earlier this year, highlighting an ongoing relationship between the two companies.
*APOLLO IS SAID TO OFFER MULTIBILLION-DOLLAR INVESTMENT IN INTEL
So much Intel news lately.
— Spencer Hakimian (@SpencerHakimian) September 22, 2024
While the proposal is under consideration, sources close to the matter believe the terms of the deal remain fluid, as an investment of this magnitude could still be adjusted. There’s also the possibility that negotiations may break down, resulting in the deal falling through.
Interestingly, the latest investment move comes at a critical time, as Qualcomm Inc., the San Diego-based semiconductor giant, has reportedly also made a move to take over Intel.
Several reports from leading publications revealed that Qualcomm has recently approached Intel with an offer, though the specifics of the discussions remain unclear, and while Qualcomm’s interest is evident, Intel has not confirmed if it is actively engaging in talks with the chipmaker.
The recent takeover moves from Apollo and Qualcomm stem from Intel’s crisis. The company’s once dominant global semiconductor business is going through one of its most challenging periods, facing major financial hurdles and technological relevance, including a staggering $1.6 billion loss in Q2 2024.
With a market value of around $90 billion, Intel has placed plans for new chip factories in Germany and Poland on hold. Concurrently, the tech company announced major layoffs of around 15,000 jobs as part of a larger effort to slash $10 billion in costs.
Intel yesterday:
• Suspends dividend
• Announces 15,000 layoffs
• Reports double earnings missIntel this morning: pic.twitter.com/YsSwS5r9Ha
— Morning Brew ☕️ (@MorningBrew) August 2, 2024
Mounting financial difficulties have opened the door to outside parties like Qualcomm and Apollo, both of which see potential in Intel’s vast infrastructure and technology capabilities.
The semiconductor industry is watching closely as talks progress, as these potential deals could reshape the competitive space.
