“Proposal of investment intention in the form of stocks… Intel is reviewing”
(AP/Newsis) It has been reported that Apollo Global Management (Apollo), an American asset management company, has proposed an investment of up to $5 billion in Intel, a U.S. semiconductor company that is experiencing management difficulties. 2024.9.23
(Seoul = Newsis) Reporter Choi Hyeon-ho = It has been reported that American asset management company Apollo Global Management (Apollo) has proposed an investment of up to 5 billion dollars (6.68 trillion won) to Intel, an American semiconductor company that is experiencing management difficulties.
According to foreign news outlets such as MarketWatch and Reuters on the 22nd (local time), Bloomberg News reported that day, citing sources, that Apollo recently indicated its intention to invest tens of billions of dollars in Intel in the form of stocks.
Intel executives are reviewing Apollo’s proposal, but the discussions are still in the early stages. The size of the investment could change, and there is a chance that the talks could fall through, according to the report.
Both Intel and Apollo declined to comment.
This news follows the Wall Street Journal (WSJ) reporting on the 20th that semiconductor company Qualcomm had explored acquiring Intel.
However, there is an outlook that the possibility of the deal between Qualcomm and Intel actually coming to fruition is unclear. This is because it is a very large deal and it will not be easy to overcome antitrust screening by the authorities.
Meanwhile, Intel, once known as the world’s best semiconductor company, is currently experiencing a crisis due to poor performance. Its stock price has fallen by about 57% this year, and it is taking cost-cutting measures such as large-scale restructuring and suspending dividend payments.
Regarding Intel’s crisis, there is an analysis that it failed to respond to the changes in the smartphone-centered market and was complacent with the glory it enjoyed in the PC market, which led to its competitiveness being weakened. There is also an outlook that it will be pushed back by its competitor AMD in the PC market. Another reason for the crisis is that it was late in joining the global artificial intelligence (AI) craze.
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