Intel received $5.7 billion in cash on Wednesday night as part of the deal U.S. President Donald Trump negotiated for a 10% stake in the struggling chipmaker, finance chief David Zinsner said at an investor conference on Thursday.
The stake in Intel announced by the U.S. government last week is an incentive for Intel to retain control of its contract manufacturing business, or foundry, Zinsner said.
As part of the deal, the government negotiated an additional 5% warrant, should Intel cease to own more than 51% of its foundry operation.
“I don’t think there’s a high likelihood that we would take our stake below 50%,” Zinsner said. “So ultimately, I would expect [the warrant] to expire worthless.”
Intel has taken steps to separate its contract chip manufacturing arm, or foundry, from its design business. The company has previously said it could take outside investment in the foundry unit, and it has created a separate management board to govern it.
Intel shares were down 0.8%, at $24.64, on Thursday afternoon.
—By Arsheeya Bajwa, Max A. Cherney, and Stephen Nellis, Reuters
Accedi per aggiungere un commento
Altri post in questo gruppo
Look, I’m not gonna lie to ya’: I’ve got a bit of a love-hate relationship with PDFs. And, more often than not, it veers mostly toward the “hate” side of that spectrum.
Don’t get m
When the U.S. government signs contracts with private technology companies, the fine print rarely reaches the public. Palantir Technologies, however, has at
Bad news for morning routines everywhere: The New York Times has put its Mini Crossword behind a paywall.
On Tuesday, instead of their usual puzzle, players were met with a paywall. The
China’s Alibaba has developed a new chip that is more versatile than its older chips and is meant to serve a broader range of
Mount Fuji hasn’t erupted since 1707. But for Volcanic Disaster Preparedness Day, Japanes
When an influencer gets married, it’s safe to assume much of the cost, from venue decor to personalized invitations, has been comped in exchange for content. Now brides with smaller, more modest f
