US Edition
Intel warns US stake could hurt international sales, future grants
Intel states the U.S. government's 10% stake, funded by $11.1 billion from federal programs, may reduce shareholder rights and impact 76% of revenue from international sales.
- Intel announced late last week that the U.S. government acquired nearly a 10% stake in the company through an $8.9 billion equity deal.
- The agreement transformed government funding from the CHIPS Act into equity shares, sparking ongoing discussions about the appropriate extent of federal involvement in private companies.
- Intel warned in a filing that government ownership could dilute shareholders, hurt international sales—76% of revenue comes from abroad—and complicate future federal funding.
- Intel's stock jumped more than 5% on the announcement, while analysts noted risks tied to political changes and questioned if the U.S. is moving toward state capitalism.
- Intel cautioned that political risks and public scrutiny might threaten the deal's stability, potentially affecting investors, employees, and global market relations.
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Here are the risks involved with the US-Intel deal, according to the company
Intel outlined the risks involved with the United States taking a 10% stake in the company.Andrej Sokolow/picture alliance via Getty ImagesIntel outlined several risks with the United States taking a 9.9% stake in the company.In an SEC filing, Intel said the deal could dilute shares and hurt its international business.Intel's future funding options could also be negatively affected.Business deals often involve risk — even when you're dealing wit…
·United States
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Intel warns US stake could hurt international sales, future grants
Intel said on Monday that the U.S. government's 9.9% stake in the chipmaker could pose risks to its business, from potentially harming international sales to limiting its ability to secure future government grants.
·United Kingdom
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Coverage Details
Total News Sources23
Leaning Left4Leaning Right1Center7Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 33%
C 58%
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