Apollo Global Management, a major U.S.-based asset manager, is reportedly offering to invest up to $5 billion in Intel, according to a Bloomberg report on Sunday. Apollo has recently expressed interest in making a significant equity-like investment in the embattled chipmaker, a person familiar with the matter revealed.
This news comes as Intel faces challenging times. Once the leading chipmaker in the world, the company’s shares have plummeted nearly 60% since the beginning of the year, reflecting its current struggles in the semiconductor sector.
- Investment Proposal: Apollo has indicated its willingness to make an equity-like investment worth billions, but discussions are still in the early stages, and no final deal has been reached.
- Intel’s Response: Intel executives are currently considering Apollo’s proposal. The investment size may change, and the deal could still fall through.
- Context: This potential investment follows Apollo’s earlier move to acquire a 49% stake in Intel’s new manufacturing facility in Ireland for $11 billion.
- Competitive Landscape: Qualcomm has also recently approached Intel to explore a potential acquisition, with Qualcomm CEO Cristiano Amon personally involved in the early negotiations.
With the semiconductor sector undergoing transformations, Apollo’s proposed investment could provide Intel with much-needed support as it navigates market challenges. However, the final outcome of these discussions remains uncertain.
