Apollo Global Management, a prominent US asset management firm, is reportedly preparing to invest up to $5 billion in Intel, Bloomberg reported on Monday.
The potential investment comes as Intel navigates a period of significant market decline, with its stock price dropping nearly 60% since the start of the year.
The report further suggests that Apollo is ready to make an equity-like investment in Intel, a deal that could provide a financial boost to the once-dominant chipmaker.
The details were shared by a source familiar with the matter, as cited by Bloomberg.
Intel considers Apollo’s proposal amid financial woes
Intel, once the world’s most valuable semiconductor company, has seen its market position weaken in recent months.
Since Patrick P. Gelsinger took over as CEO, Intel has embarked on an expensive overhaul aimed at diversifying its product offerings and client base.
However, these efforts have yet to yield positive financial results, with a series of disappointing earnings reports.
This has eroded investor confidence, leading to a sharp drop in Intel’s market value, wiping out tens of billions of dollars in the process.
The company’s recovery now faces significant challenges amidst increasing competition.
As the company weighs Apollo’s proposal, it’s clear that the investment could serve as a lifeline during a challenging period.
Talks are still in the preliminary stages, and there is no certainty that the deal will move forward, according to the report.
The size of the investment could shift, or negotiations may fall apart entirely.
However, Intel has not provided any public comment regarding the potential deal.
Apollo also has 49% stake in Intel’s $11B Ireland facility
This is not Apollo’s first move involving Intel.
Earlier in the year, Apollo acquired a 49% equity stake in a joint venture tied to Intel’s new $11 billion manufacturing facility in Ireland.
The interest in expanding their partnership signals Apollo’s strategic focus on the semiconductor industry.
Qualcomm also eyeing acquisition of Intel
Intel’s difficulties have caught the attention of other major players in the tech sector.
Just days ago, Qualcomm expressed interest in a potential acquisition of Intel, according to reports.
Qualcomm CEO Cristiano Amon is personally involved in the early-stage negotiations, though significant obstacles remain for such a transformative deal.
Qualcomm has previously explored acquiring parts of Intel’s chip design business, suggesting that its interest in the company is not new.
As these discussions unfold, the future of Intel and its position in the global semiconductor market remains uncertain.
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