The chipmaker Intel, following reports that Qualcomm had made an offer to buy it, has received another offer from the U.S. asset management company Apollo Global Management. Apollo has reportedly offered to make a $5 billion investment in Intel, according to sources that spoke to Bloomberg News.
According to those familiar with the talks, Apollo has said in recent days that it is interested in making an equity-like investment in the chipmaker. The sources also said that Intel executives had been weighing the proposals, which are said to be in the preliminary stages. The reports state that the investment offered could change as the discussion progresses.
If the Apollo investment does go forward, it wouldn"t be the first time that the asset management firm has poured money into Intel. Earlier in the year, it said it would acquire a 49% equity interest in a joint venture related to a new Irish manufacturing facility being built by Intel, this investment was $11 billion.
An investment from Apollo seems like a more likely solution to Intel"s issues than an acquisition by Qualcomm. Given the fact regulators are currently scrutinizing big tech mergers more, there"s a chance the deal wouldn"t go through due to threats to competition. Apollo, on the other hand, isn"t a chipmaker so investing in Intel wouldn"t cause competition issues.
The overall state of Intel is reflected in its stock price. In 2021, the stock was flying high around $68 per share but since then the price has tumbled to a low of just under $19 and currently sits at $21.84. It took a very hard hit at the start of August when its stock price fell by $8 overnight.
Hopefully, Intel will sort itself out with a deal that doesn"t lead to its acquisition by a rival. If this happens, we could all be looking at higher prices for anything that depends on Intel, or competitors" hardware.
Source: Bloomberg News via Reuters