{"id":1519943,"date":"2025-02-18T15:45:00","date_gmt":"2025-02-18T20:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1519943"},"modified":"2025-02-18T15:45:00","modified_gmt":"2025-02-18T20:45:00","slug":"broadcom-tsmc-weigh-deals-to-split-intel-activist-hedge-funds-ready-to-pounce","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/broadcom-tsmc-weigh-deals-to-split-intel-activist-hedge-funds-ready-to-pounce\/1519943\/","title":{"rendered":"Broadcom, TSMC Weigh Deals To Split Intel; Activist Hedge Funds Ready To Pounce?"},"content":{"rendered":"

Broadcom, TSMC Weigh Deals To Split Intel; Activist Hedge Funds Ready To Pounce?<\/span><\/p>\n

\n

Intel shares climbed 5% in premarket trading (extending gains from last week’s pump<\/a>) following a report from The Wall Street Journal<\/a><\/em> indicating that\u00a0Broadcom and\u00a0Taiwan Semiconductor Manufacturing are\u00a0considering\u00a0potential deals that could result in a breakup of the\u00a0struggling US chipmaker.\u00a0<\/p>\n

WSJ noted:<\/p>\n

Broadcom has been closely examining Intel’s chip-design and marketing business<\/em><\/strong>, according to people familiar with the matter. It has <\/em>informally discussed with its advisers making a bid<\/em><\/strong> but would likely only do so if it finds a partner for Intel’s manufacturing business, the people said.<\/em><\/p>\n

Last week, Intel shares recorded the largest weekly gain in the company’s four-decade trading history after Bloomberg reported that TSMC was in early discussions to acquire a controlling stake in Intel’s factories<\/strong> at the request of Trump administration officials.<\/p>\n

“But the potential deals would have been unthinkable until Intel’s recent struggles made it an acquisition target,” <\/strong>WSJ’s\u00a0Asa Fitch,\u00a0Lauren Thomas, and\u00a0Yang Jie pointed out, adding,\u00a0“The end result could be a breakup of Intel<\/strong> after the American icon spent many decades dominating the business of making central processors for both personal computers and data centers.”\u00a0<\/p>\n

Given our understanding last August, it was not unthinkable that Intel holds excess value within its enterprise, particularly in its fabs…<\/p>\n

Intel has 15 fabs; the fabs alone are worth $10bn\/each in liquidation value.<\/p>\n

The value created by management is negative $50 billion. https:\/\/t.co\/HkqUQJ4A6J<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) August 2, 2024<\/a><\/p>\n

WSJ sources said that\u00a0Frank Yeary, Intel’s interim executive chairman, has been spearheading discussions with potential buyers as well as officials from the former Trump administration, who view the company’s chip production as\u00a0critical to national security.\u00a0Yeary has privately told folks behind the scenes that his goal is\u00a0maximizing value for Intel shareholders<\/strong>.\u00a0<\/p>\n

This could be an excellent time for an\u00a0activist hedge fund\u2014such as Elliott Management<\/strong>\u2014to step in and stir the pot, as valuation discussions behind those fabs and the company are likely worth in the $35-$40 range, if not higher.<\/p>\n

Now would be a great time for an activist hedge fund to come in with a stalking horse bid (cc: Elliott) https:\/\/t.co\/5wIgZ9y1AJ<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) February 18, 2025<\/a><\/p>\n

Generational low…\u00a0<\/p>\n

<\/a><\/p>\n

WSJ noted that\u00a0Broadcom and TSMC aren’t working together and that all discussions have been preliminary and largely informal.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 02\/18\/2025 – 10:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/broadcom-tsmc-weigh-deals-split-intel-activist-hedge-funds-ready-pounce<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadcom, TSMC Weigh Deals To Split Intel; Activist Hedge Funds Ready To Pounce? Intel shares climbed 5% in premarket trading (extending gains from last week’s…<\/p>\n","protected":false},"author":0,"featured_media":1519944,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1519943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1519943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1519943"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1519943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1519944"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1519943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1519943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1519943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}