The American asset management firm Apollo Global Management (APO.N), opens new tab, has proposed an investment totaling up to $5 billion in Intel (INTC.O), opens new tab, as reported by Bloomberg News on Sunday.
In recent discussions, Apollo has expressed a willingness to make a substantial equity-like investment in Intel, according to sources familiar with the situation.
This development arrives at a challenging time for Intel, which was once hailed as the leading chipmaker globally but has seen its stock value plummet by nearly 60% since the beginning of the year.
Intel’s leadership is reportedly reviewing Apollo’s offer, as noted by Bloomberg, indicating that negotiations are in the early phases and not yet finalized.
Bloomberg also mentioned that the potential investment figure could shift and that the talks could ultimately collapse.
Intel has refrained from commenting on the Bloomberg News article, while Apollo did not provide a response to Reuters’ inquiry for comment.
Earlier this year, Apollo announced its intention to buy a 49% equity stake in a joint venture affiliated with Intel’s upcoming manufacturing facility in Ireland for $11 billion.
This potential investment in Intel follows Qualcomm (QCOM.O), opens new tab’s recent outreach to Intel, aimed at exploring a possible acquisition of the beleaguered chipmaker, which could lead to a significant shift in the industry but faces numerous challenges.
Qualcomm CEO Cristiano Amon is personally engaged in the discussions to acquire the half-century-old Intel, which are reportedly in the preliminary stages, according to Reuters on Friday, citing a source informed about the situation.
In the past, Qualcomm has also considered acquiring segments of Intel’s chip design operations.
Apollo Eyes $5 Billion Stake in Intel, According to Bloomberg News
