Struggling Tech Giant Spurns Bid from Arm Holdings
Intel, the beleaguered chipmaker, has reportedly rejected an offer from Arm Holdings to acquire its product division. This development comes amidst a flurry of rumors and speculation surrounding Intel’s future. Just days ago, it was reported that Apollo Global Management was considering a $5 billion investment in Intel, while Qualcomm was said to have made a takeover bid for the company.
Intel’s stock has plummeted by over 50% since the start of the year, sparking concerns about its ability to revamp its business. The company’s struggles with high debt levels and losses have led to increased deal activity and chatter. In a bid to stem its losses, Intel recently updated investors on its strategic plans, which involve separating its chip product division from its manufacturing operations.
Arm Holdings, a leading chip designer, had reportedly made a bid for Intel’s product division, which sells chips for personal computers, servers, and networking equipment. However, Intel has declined to comment on the matter, as has Arm Holdings.
Despite the rejection, Intel’s shares remained relatively unchanged on Friday, closing out a tumultuous week for the company. The decline in Intel’s stock this year has been attributed to investor concerns about its ability to turn its business around. Meanwhile, American depositary receipts (ADRs) of Arm Holdings fell by over 2%.
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