Apollo Global Management Inc. has proposed a multibillion-dollar equity-like investment in Intel Corp., signaling confidence in Intel’s turnaround strategy, according to sources familiar with the matter. The investment firm is willing to invest up to $5 billion, though the size could change, and the deal isn’t final.
This potential investment coincides with Qualcomm Inc.’s friendly takeover proposal for Intel, which could become one of the largest mergers in history.
Under CEO Pat Gelsinger, Intel has embarked on a costly plan to revamp its business by introducing new products, technology, and acquiring external customers. The initiative has faced challenges, leading to declining earnings and a significant drop in the company’s market value.
Apollo, known for its insurance, buyout, and credit strategies, has a history in distressed investing and has previously collaborated with Intel. In June, Intel sold a stake in a joint venture controlling a factory in Ireland to Apollo for $11 billion to help fund its factory expansion. Apollo has also invested in the chipmaking sector, leading a $900 million investment in Western Digital Corp. last year.
Both Apollo and Intel declined to comment on the discussions.
