Intel Corp. has reportedly received an investment offer from Apollo Global Management Inc., which could amount to as much as $5 billion, according to sources familiar with the discussions.
This potential equity-like investment is viewed as a sign of confidence in Intel’s ongoing turnaround strategy.
The proposal comes at a time when Qualcomm Inc. is also considering a friendly takeover of Intel, a move that could lead to one of the largest mergers and acquisitions in the tech industry. Sources indicate that Qualcomm has approached Intel regarding this possibility.
Intel executives are currently evaluating Apollo’s offer, although discussions are still in the early stages and no deal has been finalized. The size and terms of the investment may change, and there is a possibility that negotiations could ultimately fall through.
Under CEO Pat Gelsinger, Intel has been pursuing an extensive transformation plan aimed at revamping its product lineup and attracting new customers. However, this initiative has faced challenges, reflected in a series of disappointing earnings reports that have diminished investor confidence and led to significant declines in market value.
While Apollo is recognized for its investments in insurance, buyouts, and credit strategies, it originally specialized in distressed investments. The firm already has a relationship with Intel, having agreed in June to acquire a stake in a joint venture controlling a plant in Ireland for $11 billion, which will support Intel’s factory expansion.
Additionally, Apollo has previous experience in the semiconductor sector, having led a $900 million investment in Western Digital Corp. last year. Representatives from both Apollo and Intel have declined to comment on the matter at this time.
Fortune, Market Watch, and Bloomberg contributed to this report.
