In a bold move to revitalize its struggling business, Intel Corp. recently made the decision to sell its holdings in Arm Holdings Plc during the second quarter. This decision comes as Intel is facing challenges in an industry it once dominated, with the company recently experiencing one of the worst earnings reports in its history.
The sale of 1.18 million shares of Arm Holdings Plc likely raised around $147 million for Intel, based on the average stock price during that period. While this sale may have provided a much-needed financial boost, Intel still reported a net loss of $120 million on its equity investments during that time.
Arm Holdings Plc, a chip technology creator, is majority-owned by Japan’s SoftBank Group Corp and is known for licensing chip designs to companies across the semiconductor industry, including Intel. Intel, on the other hand, produces the majority of its own chips based on in-house designs, but has been losing ground to competitors who utilize Arm’s products.
As Intel works to regain its footing and make necessary changes, such as cutting jobs, reducing expenses, and suspending its dividend, it will be interesting to see how this recent sale of Arm Holdings Plc shares fits into the company’s overall strategy moving forward.
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