Is Intel Being Acquired? Major Investment Firm and Competitor Show Interest

Apollo Global Management, a large investment manager, has offered to make a multi-billion dollar investment in Intel. Bloomberg reports this via their press bureau. According to sources, this move could be seen as a sign of confidence in the American chipmaker's own recovery strategy. Meanwhile, it appears that competitor Qualcomm is showing interest in acquiring Intel.

Intel has had recent difficulties and has been subject to acquisition speculation. Under the leadership of top executive Pat Gelsinger, the company is working on an expensive plan to reinvent itself and attract new products, technology, and external customers. However, this initiative has led to a series of disappointing quarterly results, undermining trust in the strategy and causing tens of billions of dollars in market value to evaporate.

While Gelsinger still believes that the recovery plan may be sufficient to keep Intel independent, insiders say he is open to considering alternatives.

Approach Attempt

Last weekend it became clear that chipmaker Qualcomm has interest in a 'friendly' acquisition of Intel. There would also already have been an approach attempt, Bloomberg reports. Such an acquisition could possibly also be a solution for Intel. If a deal comes about, it might become one of the largest mergers and acquisitions ever. A friendly takeover means that Qualcomm is targeting an acquisition where Intel's management agrees.

It is unclear whether this initial approach will lead to an agreement. An eventual deal would likely be closely examined by competition authorities and could still take a lot of time.

Qualcomm has a market value of roughly $188 billion, while Intel is currently worth approximately $93 billion. The alleged interest from Qualcomm caused Intel's stock price to rise more than 3 percent on Wall Street. The involved companies declined to comment.