Intel, once the global leader in chip manufacturing, has seen its shares decline by nearly 60 per cent since the start of 2024. (Photo: Shutterstock)
Apollo Global Management has proposed a $5 billion investment in Intel, indicating confidence in the chipmaker’s turnaround strategy, according to a Bloomberg report on Monday. Intel executives are currently considering Apollo’s proposal, which could be structured as an equity investment, the report added.
If the deal materialises, it could be one of the largest mergers and acquisitions in history. Bloomberg reported that the investment amount could change as negotiations progress. Neither Apollo nor Intel has made any official statement regarding the proposal.
Intel’s challenges
Under its current chief executive officer, Pat Gelsinger, Intel has undergone a costly transformation to expand its product range and customer base. However, these efforts have led to a series of disappointing earnings reports, resulting in a significant decline in market confidence and a loss of tens of billions of dollars in market value.
Previous deal between Intel and Apollo
Apollo, known today for its insurance, buyout, and credit strategies, originally started as a distressed-investing specialist in the 1990s. The two companies have a history: Intel sold a stake in a joint venture operating a plant in Ireland to Apollo for $11 billion. This move was intended to secure external funding for Intel’s large-scale factory expansion.
Qualcomm’s interest in Intel
Reports suggest that Qualcomm’s chief executive officer, Cristiano Amon, is personally involved in the negotiations with Intel. While Qualcomm is considering several of Intel’s businesses, it is particularly interested in Intel’s PC design unit, according to Reuters.
Intel, once the global leader in chip manufacturing, has seen its shares decline by nearly 60 per cent since the start of 2024.
First Published: Sep 23 2024 | 9:22 AM IST
