Apollo Global significantly bets on Intel, optimistic about its transformation prospects.
According to media reports citing internal sources, Apollo Global plans to conduct a $5 billion equity investment in Intel, and Intel executives are currently negotiating this proposal.
This move by Apollo comes just as last Saturday when there were rumors that Intel might be sold to Qualcomm. Media opinions point out that this could be a vote of confidence from Apollo in Intel's turnaround strategy, or increase the possibility of being acquired by Qualcomm.
It is reported that back in June this year, Apollo Global had already acquired a joint venture for $11 billion, which owns an Intel factory in Ireland.
Insiders added that Apollo's investment plan is not yet finalized, the potential investment size may change, and negotiations could also fail.
<h2>Intel is actively seeking self-rescue</h2>
Due to losses in chip manufacturing business and profit pressure in the PC sector, Intel is currently facing its most serious downturn in its 56-year history, with revenue shrinking for three consecutive years.
The latest financial report from Intel shows that the company's revenue in the second quarter was $12.8 billion, a 1% year-on-year decrease; with a net loss of $1.61 billion, totaling $2.091 billion in losses for the first half of the year. This financial report has been described by analysts as &#34;the worst earnings report ever.&#34;
The third-quarter performance guidance released by the company is also below analyst expectations, and Intel has announced plans to lay off 15,000 employees by the end of the year.
Over the past year, Intel's stock price has fallen by 36%, with a market value of about $93 billion, while Qualcomm's stock price has risen by over 56% during the same period.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1096709f-3dc2-4409-9682-e5ecf08aee77.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1096709f-3dc2-4409-9682-e5ecf08aee77.png"/>
Recently, Intel is actively considering a &#34;self-rescue&#34; plan.
At the end of August, Wall Street News mentioned that media reports stated Intel is discussing various options, including splitting its product design and manufacturing business, cutting factory investment projects. Morgan Stanley and Goldman Sachs, long-term partners of Intel, are providing comprehensive strategic advice, including potential mergers and acquisitions.
During a board meeting in mid-September, Intel stated that it is considering various strategic options, including cutting billions of dollars in factory projects, selling off some subsidiaries, and spinning off core businesses into independent companies.
After news of negotiations with Qualcomm for a merger surfaced, Intel's stock price surged rapidly on Friday, with the largest increase reaching 13% intraday, triggering a temporary halt
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0ee19f8d-fbef-4d97-8036-dc74942b4e76.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0ee19f8d-fbef-4d97-8036-dc74942b4e76.png"/>

INTC

QCOM

Media reports state that Apollo Global plans to purchase $5 billion worth of shares in Intel. Analysts believe that this move by Apollo could be a vote of confidence in Intel's self-rescue strategy, or increase the possibility of being acquired by Qualcomm

- Apollo Asset Management plans a $5 billion equity investment in Intel, with negotiations ongoing among Intel executives.  
- This move coincides with rumors of Intel being sold to Qualcomm, reflecting Apollo's confidence in Intel's turnaround strategy amid its significant financial struggles.  
- Intel is facing its worst downturn in 56 years, with declining revenues and plans to cut 15,000 jobs, while exploring various strategic options, including potential mergers and divestitures.

Bullish on future transformation! Apollo Global plans to invest billions of dollars in Intel