The former leader spurned scenarios such as the company’s breakup. Qualcomm and Apollo have previously contemplated Intel deals.
The departure of CEO Pat Gelsinger signals that changes are likely for Intel as its board revisits strategic options to address the company’s prolonged struggles. Key possibilities include splitting its factory and product divisions, pursuing divestitures like Altera or Mobileye, and courting potential suitors like Qualcomm. Gelsinger’s exit comes after resistance to radical changes despite mounting challenges, including disappointing financial performance, job cuts, and paused construction projects. With Morgan Stanley and Goldman Sachs advising, Intel’s new leadership may entertain broader shake-ups, potentially redefining the company’s role in the chip industry.
My Take
Intel’s leadership transition is a unique opportunity to redefine its identity through bold moves such as pursuing aggressive mergers and acquisitions and spinning off non-core units.
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Credit: Bloomberg