Investment firm Apollo considers $5 billion injection into Intel
Apollo Global Management, a leading US asset management firm, has proposed a substantial investment of up to $5 billion in Intel, according to Bloomberg. The potential investment is being viewed as an endorsement of Intel's revival strategy under CEO Pat Gelsinger's leadership. Gelsinger has been implementing an ambitious plan to revamp the company by introducing new products and technologies, and attracting external clients.
Intel's market position and Apollo's investment proposal
Intel, once the world's most valuable chipmaker, has seen its shares plummet by nearly 60% since the beginning of this year. In response to these challenges, Intel executives are currently considering Apollo's investment proposal. However, Bloomberg reports that discussions about the deal are still in their early stages and nothing has been finalized yet. The potential investment amount could change or negotiations could fall through entirely, resulting in no agreement.
Apollo's existing ties and potential acquisition interest in Intel
Apollo has previously expressed interest in acquiring a 49% equity stake in a joint venture related to Intel's new manufacturing facility in Ireland for $11 billion. This follows an agreement in June where Intel agreed to sell a stake in a joint venture, securing additional external funding for its extensive factory network expansion. Concurrently, Qualcomm has also shown interest in potentially acquiring the beleaguered chipmaker, with CEO Cristiano Amon personally involved in the early-stage negotiations.
