Intel Offered Up To $5 Billion From Apollo: Report

The news of Apollo Global Management’s interest arrived after mobile chip giant Qualcomm approached Intel in recent days about potentially acquiring the chipmaker.

Intel has reportedly received an investment offer for up to $5 billion from alternative asset management firm Apollo Global Management.

Citing unnamed sources, Bloomberg on Sunday reported that Apollo reached out to the beleaguered semiconductor giant about a potential equity-like investment in recent days and said Intel executives are now weighing the offer.

[Related: 6 Big Intel Changes, Wins Outlined By CEO: AWS Chip Deal, Independent Foundry, Factory Delays]

The financial publication noted, however, that the deal is not set in stone.

Intel’s stock price was up more than 4 percent in pre-market trading Monday.

The news of Apollo’s interest arrived after mobile chip giant Qualcomm approached Intel in recent days about potentially acquiring the chipmaker, as the Wall Street Journal reported Friday. A new report from Reuters on Saturday said Qualcomm CEO Cristiano Amon is closely involved with the effort and exploring different scenarios for an acquisition.

This is all happening as Intel moves to cut more than 15,000 jobs and over $10 billion in costs in response to worsening financial conditions as the company’s CEO, Pat Gelsinger, pushes for the chipmaker through the final lap of his four-year comeback plan. The company’s stock price is down 54 percent from the beginning of the year.

A week ago, Gelsinger revealed major changes to Intel that he said will help the semiconductor giant improve its profitability and competitiveness. These changes include turning its contract chip manufacturing business, Intel Foundry, into an independent foundry, delaying construction for new facilities in Europe, reorganizing certain product groups under its main businesses, doubling down on its x86 business and reducing its real estate by roughly two-thirds.

Intel also last week revealed a “multi-year, multibillion-dollar framework” where it will design and manufacture custom chips for Amazon Web Services. In addition, the company said it was awarded up to $3 billion by the Biden administration to help the U.S. military improve its capabilities and secure a domestic supply chain.