Intel has been offered a serious cash injection from Apollo Global Management Inc., reports Bloomberg. According to the business-focused publication, and its people familiar with the matter, Intel could receive a multibillion-dollar equity-like investment from Apollo. Talks are still in the preliminary stage, it is claimed, but could signal that a significant vote of confidence in – and fuel for – Intel’s successful turnaround might be on the way.
At stake here is an investment of up to $5 billion, indicates Bloomberg sources. However, the people who revealed that these negotiations were ongoing, and provided some background details, have asked to remain anonymous. Moreover, Bloomberg’s sources indicate that the size and / or nature of Apollo’s investment could change or the whole deal fall apart. Thus an ounce of skepticism regarding whether we will see this deal close, or not, is due.
An investment for equity approach from Apollo isn’t the greatest surprise, though. As the source report notes, the two firms have an existing business relationship. In June, Intel agreed to sell an $11 billion stake in its Irish factory JV to Apollo, helping fund its massive expansion plans.
Regular readers will be well aware of Intel’s ongoing business troubles. Earlier this month chief executive Pat Gelsinger revealed the company’s next steps to get past this very difficult period, outlining three main goals. A $10 billion saving target was mentioned by Gelsinger, but of course, it would mean some hard decisions regarding staffing, expansion plans, and other streamlining measures.
There is always a chance that pulling back from investments can thwart a potential recovery, so if Apollo invests $5 billion, as rumored, Intel might take its proposed deal. Sadly, we currently don’t have even a hint at what terms Apollo is seeking to go ahead with its equity-like investment. Similarly, we don't know what red lines Intel may have inked into any deal.
Intel / Qualcomm rumors rumble on
The above financial development comes hot on the heels of extraordinary rumors regarding the possibility of Qualcomm’s friendly takeover of Intel. These rumors gained traction over the weekend when heavyweight tech analyst Ming Chi-Kuo confirmed he had also heard about a possible takeover deal.
My industry survey also indicates that Qualcomm is currently in takeover talks with Intel. However, if this acquisition were to go through, it could prove disastrous for Qualcommhttps://t.co/fJ7EozISveSeptember 22, 2024
