BUSINESS

Why is Intel So Hard to Sell?

Santa Clara, USATue Jan 28 2025
Intel's future is stuck in a tricky spot. Its factories need loads of money and time to fix, which scares off potential buyers. Plus, the US government has poured money into these factories, making it tough to shut them down. So, no one wants the factories, but Intel can't sell without them. Recent rumors about Intel being bought have caused its share price to jump. But who would want to take on these money-hungry factories? Not many companies or private equity firms are up for it. The problem is, Intel can't be sold without its factories. And the US government has invested heavily in them, making it a political headache to close them down. It's a messy situation that's hard to untangle. Intel's troubles have been brewing for a while. Back in May, there were whispers that Broadcom might buy them. But now, it seems like the most likely candidates have stepped back. Even private equity funds, who could afford it, are passing. The factories are the main issue. They need billions of dollars and years to get back on track. Few companies want to deal with that. The US government has given Intel a lot of money, so shutting down the factories isn't easy. Some investors think the only way to save Intel is if the government steps in. But that's not the only option. There are rumors about a tech mogul with a plan to buy Intel. From a certain perspective, that might be what's needed to save the US' semiconductor manufacturing. It's looking more and more like the only way for Intel to survive is if someone buys them and changes the board. But that path is full of challenges.

questions

    Could technological innovation be stifled if the new buyer decides to shut down Intel’s factories?
    Is there a 'For Sale by Owner' option for multi-billion dollar companies like Intel?
    What role should the government play in facilitating the sale of Intel, given the political complexities?

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