Apollo Global Management's consideration of a $5 billion investment in Intel represents a significant strategic maneuver within the semiconductor industry. According to Bloomberg News, this potential investment emerges amidst Intel's declining share price, which has rendered the company an appealing target for investors . The ongoing challenges faced by Intel, including increased competition and operational difficulties, have prompted external interest as companies seek to capitalize on its undervaluation.
The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion in Intel, said one of the people, who asked not to be identified discussing confidential information. Intel executives have been weighing Apollo’s proposal, the people said.
Apollo has indicated in recent days it would be willing to make an equity-like investment of billions of dollars in Intel, the report said citing a person familiar with the matter.
Intel executives have been weighing Apollo's proposal, Bloomberg reported, adding that talks regarding the deal have not been finalized.
The size of the potential investment could change and discussions could fall through, the report said.
Apollo and Intel did not immediately respond to a Reuters' request for comment.
The companies already have a relationship. Santa Clara, California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland for $11 billion to Apollo, bringing in more external funding for a massive expansion of its factory network. Apollo also has other experience in the chipmaking space. Last year, the New York-based firm agreed to lead a $900 million investment in Western Digital Corp., buying convertible preferred stock.
The companies already have a relationship. Santa Clara, California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland for $11 billion to Apollo, bringing in more external funding for a massive expansion of its factory network.
Apollo also has other experience in the chipmaking space. Last year, the New York-based firm agreed to lead a $900 million investment in Western Digital Corp. (WDC), buying convertible preferred stock.
Additionally, Apollo’s previous acquisition of a substantial equity interest in Intel’s manufacturing facility underscores its commitment to bolstering Intel’s operations . This multifaceted approach may ultimately enhance both companies' market positions as they navigate an ever-evolving technological environment.
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