Apollo Global Management Inc. (APO) is reportedly considering a major investment in Intel Corp. (INTC), potentially injecting billions of dollars into the struggling chip giant. According to Bloomberg, citing sources familiar with the matter, Apollo has proposed an equity-like investment of up to $5 billion in Intel. Intel executives are currently evaluating the proposal.
The potential investment comes amidst a whirlwind of activity surrounding Intel. Rumors have been circulating that Qualcomm Inc. (QCOM) is planning to acquire Intel in what could be one of the largest mergers and acquisitions (M&A) deals in history, potentially surpassing Microsoft Corporation’s $69 billion acquisition of Activision Blizzard.
Intel’s recent performance has been a cause for concern. The company’s second-quarter earnings reflected an 84.62% decline from the same period last year, reporting quarterly earnings of just 2 cents per share, significantly short of analyst expectations.
Further fueling uncertainty, a prominent board member at Intel, Lip-Bu Tan, resigned from his position in August following a dispute with CEO Pat Gelsinger and other directors, raising concerns about the company’s direction.
This potential investment from Apollo could provide a much-needed boost for Intel, injecting capital and potentially helping to stabilize the company during a challenging period. However, it remains to be seen if the deal will ultimately materialize and whether it will be sufficient to address Intel’s current challenges.
