Struggling Intel gets $2 billion investment from SoftBank
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SoftBank's investment will come via a primary issuance of common stock by Intel, and, based on the U.S. company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, an Intel spokesperson said.
The investment will make SoftBank Intel’s fifth biggest investor, with the conglomerate paying $23 per share of Intel common stock. Lip-Bu Tan, Intel’s CEO, said in a statement that he “appreciate (s) the confidence (SoftBank) has placed in Intel with this investment.”
The president recently secured a commitment by Nvidia and Advanced Micro Devices to pay the government 15% of their chip sales in China in exchange for export licenses. In Nippon Steel’s takeover of U.S. Steel, he received a “golden share” giving him sway over how the company operates.
A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.
Intel is getting a $2 billion investment in common stock from SoftBank, which is betting big on the AI revolution.
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Japan’s SoftBank will invest $2 billion into struggling American chipmaker Intel, the two companies announced Monday.
(Reuters) -Intel is in talks with other large investors to receive an equity infusion at a discounted price, CNBC reported on Wednesday, just days after the chipmaker got a $2 billion capital injection from SoftBank Group.