Intel’s having its moment in the sun again as it received an investment offer of $5 billion USD from asset management company, Apollo Global Management.
👉 Background: Intel is one of the world’s largest computer chipmakers, with a market cap of $93 billion USD. But Intel's glory era was back in the early 2000's when it had a market cap of $500 billion USD. Since then, despite its best efforts to recreate the glory days, Intel has lagged behind competitors, like TSMC and Nvidia.
👉 What happened: Intel’s having its moment in the sun again as it received an investment offer of $5 billion USD from asset management company, Apollo Global Management. This news sent Intel’s share price up 4.2%.
👉 What else: This offer has come just after rival chipmaker Qualcomm reportedly approached Intel for a potential takeover. If the offer was to go through, it would be the biggest tech merger of all time.
💡In business, like in nature - the predator can also become prey. While Intel was at one point that largest chipmaker in the world, today it is about half the size of its potential acquirer, Qualcomm.
💡 Intel was quite the heavy hitter back in the day, having 108 acquisitions worth $1.5 billion USD over its lifetime. But now, it's on the other side of a takeover.
💡This is similar to the Yahoo story. It turned down an offer to buy Google for $1 million and also made attempts to acquire Facebook. Instead, Yahoo made a number of bad deals that didn’t pay off and was eventually acquired for a mere $4.5 billion.
Sign up for Flux and join 100,000 members of the Flux family
