Apollo Global Management has proposed a multibillion-dollar investment in Intel Corporation. The alternative asset manager is willing to make an equity-like investment of up to $5 billion in Intel. This development follows a proposed friendly takeover of Intel by San Diego-based Qualcomm Inc.
Qualcomm has approached Intel in recent days over a takeover amid “one of the most significant crises in its five-decade history,” the WSJ reports, citing unnamed sources and noting a “deal is far from certain.” It would be the biggest semiconductor industry acquisition ever, if…
— Dan Nystedt (@dnystedt) September 23, 2024
Neither the Apollo investment nor Qualcomm’s acquisition proposal has been finalized.
Intel could win a multi-billion dollar vote of confidence in its turnaround strategy from Apollo Global, which is in talks to invest up to US$5 billion in the chip giant, Bloomberg reports, noting Apollo also acquired a 49% equity interest in Intel’s Ireland facility in June for…
— Dan Nystedt (@dnystedt) September 23, 2024
Under the leadership of Chief Executive Officer Pat Gelsinger, Intel has been investing heavily in revamping its operations and introducing new products and technologies. Despite these efforts, Intel is on track for its third consecutive year of declining sales, with its stock value dropping more than 50% this year.
Gelsinger’s recent announcements have buoyed investor confidence.
Apollo to Offer Multibillion-Dollar Investment in @Intel
o Investment firm offered ~$5B equity-like investment in chipmaker
o Move comes as rival Qualcomm makes approach about takeoverhttps://t.co/z2hEFtXRMF#HPC #AI
— HPC Guru (@HPC_Guru) September 23, 2024
These included a collaboration with Amazon Web Services to co-invest in a custom AI semiconductor and restructuring Intel’s manufacturing business into a wholly owned subsidiary.
Apollo’s investment proposal in Intel
Intel also announced suspensions of certain projects, including new factories in Germany and Poland. Intel and Apollo already have an established relationship. In June, Intel agreed to sell a stake in a joint venture controlling an Irish plant to Apollo for $11 billion, aiding in the expansion of Intel’s factory network.
Apollo also has previous experience in the semiconductor sector. Last year, the firm led a $900 million investment in Western Digital Corp., acquiring convertible preferred stock. This potential investment signifies Apollo’s confidence in Intel’s strategic direction and highlights Intel’s efforts to secure external funding to support its ambitious growth and restructuring initiatives.
Intel executives are currently reviewing Apollo’s proposal. However, the specifics of the investment remain fluid, with the size potentially subject to change, and there is a possibility that the discussions may not result in a deal. Representatives for both Apollo and Intel have declined to comment on the ongoing discussions.
