Intel is in talks to get an investment of up to $5 billion from Apollo, report says
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- Apollo Global Management is in talks to invest up to $5 billion into Intel, Bloomberg reports.
- The chipmaker is considering the offer, but no deal has been finalized yet.
- It follows a separate report that Qualcomm approached Intel about a potential takeover.
Intel could be getting a capital injection of up to $5 billion from asset management powerhouse Apollo Global Management, Bloomberg reported on Sunday.
The chipmaker is considering the proposition, according to Bloomberg, which cites unnamed people familiar with the plans. According to the report, the "equity-like" investment is still under discussion, and no deal has been finalized.
News of the investment discussions comes after The Wall Street Journal reported on Friday that Qualcomm approached Intel about a potential takeover. However, the potential deal could face antitrust scrutiny and political challenges.
It follows a Reuters report a few weeks earlier that Qualcomm was considering buying parts of Intel's business.
Last month, Intel announced plans to lay off 15,000 employees, cut capital expenditures, and suspend its dividend from the fourth quarter. CEO Pat Gelsinger sent an email last week outlining the "next phase of Intel's transformation. The plan includes creating an independent subsidiary for its foundry business, which makes chips designed by other companies like Microsoft.
Intel also announced a partnership with Amazon Web Services
to produce custom designs for the cloud giant as part of a "multi-year, multi-billion-dollar framework."
Intel, once the world's most valuable chipmaker, has seen its shares nosedive by close to 60% since the start of the year due to several challenges around its production and strategy. The company missed out on the mobile chip revolution, and TSMC gained market share from Intel by around 2018.
Intel and Apollo didn't immediately respond to requests for comment from Business Insider, made outside normal working hours.