It was going to be grants for various programs, but Intel wasn't meeting the requirements for those grants, so they renegotiated to sell stock instead of receiving the grants.
goblinmeat67 16 hours ago [-]
Did they take the money? So they agreed to the extortion terms? Did the stock pump? Did they now say that wasn't a good deal? why did they not let intel go belly up?
dlcarrier 11 hours ago [-]
It's all in the press release, but it's in press-release-speak, so here's a much more concise version:
* Intel qualified for a $3.2B grant to manufacture security hardware for the US and $5.7B of grants under the CHIPS and Science Act.
* Intel failed to meet the requirements of the grants, and was required to return it.
* Intel and the US government renegotiated for Intel to pay back in stock, as well as to sell an additional $8.9B in stock, to the US government.
That much stock ownership usually grants enough votes to select board members, but the US agreed to passive ownership terms, where they would get no board representation or independent votes. This is in contrast to the more fascist style of government investment in, for example, the USPS and Amtrak, where the US government appoints nine out of the eleven members of the USPS board of directors and the US Secretary of Transportation is one of the ten members of the Amtrak board.
The US government had an interest in keeping Intel afloat, as it is the most capable supplier of locally-manufactured semiconductors for the military. Intel stock is now worth more than five times its value when the deal was reached, so it was a good financial deal for the US government, for Intel themselves, and for anyone that has held on to Intel stock since the deal was made.
Seems more like a shareholder is mad they were extorted. Which is a normal reaction to being extorted.
It literally doesn't cost you anything to open the link.
It was going to be grants for various programs, but Intel wasn't meeting the requirements for those grants, so they renegotiated to sell stock instead of receiving the grants.
* Intel qualified for a $3.2B grant to manufacture security hardware for the US and $5.7B of grants under the CHIPS and Science Act.
* Intel failed to meet the requirements of the grants, and was required to return it.
* Intel and the US government renegotiated for Intel to pay back in stock, as well as to sell an additional $8.9B in stock, to the US government.
That much stock ownership usually grants enough votes to select board members, but the US agreed to passive ownership terms, where they would get no board representation or independent votes. This is in contrast to the more fascist style of government investment in, for example, the USPS and Amtrak, where the US government appoints nine out of the eleven members of the USPS board of directors and the US Secretary of Transportation is one of the ten members of the Amtrak board.
The US government had an interest in keeping Intel afloat, as it is the most capable supplier of locally-manufactured semiconductors for the military. Intel stock is now worth more than five times its value when the deal was reached, so it was a good financial deal for the US government, for Intel themselves, and for anyone that has held on to Intel stock since the deal was made.