Intel is getting a $2 billion investment from SoftBank

[Daniel Nenni]

Remember, Softbank has investments all over the world including controlling stakes in Arm and Stargate. This investment could evolve to much bigger things, absolutely. I'm sure Masayoshi Son and Lip-Bu Tan are well acquainted. Go Intel!

 

[user nl]

He always looks to get a better deal.

Maybe Trump can shuffle the deck and get a better deal for our hard working tax dollars.

Ask the companies/people/retirees that were left in the dust from all the Casino's bankruptcies orchestrated by Trump et al. who got the best deal in the end.

I would not put my trust in billionaire POTUS and his billionaire servants Lutnick and Bessent:

https://docs.house.gov/meetings/JU/JU00/20200929/111078/HMKP-116-JU00-20200929-SD003.pdf

 

[Markwrob]

Ask the companies/people/retirees that were left in the dust from all the Casino's bankruptcies orchestrated by Trump et al. who got the best deal in the end.

Exactly my point. He always looks for the best deal. For himself. Even his kids are lucky if he considers them.

 

[VictorCosg]

Key Points:

• ~ SoftBank is buying roughly 2% of Intel’s outstanding shares in a $2 billion investment in the chipmaker.
• 
  
• ~ Intel shares lost 60% of their value last year as the company failed to gain traction in the artificial intelligence market that’s dominated by Nvidia.
• 
  
• ~ The investment is a vote of confidence in Intel, which has spent heavily to stand up a manufacturing business but hasn’t yet secured a significant customer.

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SoftBank is investing $2B for a 2% stake in Intel, signaling confidence despite Intel’s 60% share drop last year and struggles in AI versus Nvidia.

 

[tooLongInEDA]

I'm also missing something about the financial benefits of this.

@hist78 initially claimed this was a cash infusion into Intel by SoftBank. If it's just a share purchase, I don't see how it could be. If it's some more complicated transaction involving Intel "treasury stock" (not an expert on what that might be), perhaps so. If it's done by printing more shares to sell (as is sometimes done to finance stock options), then's it's dilutive for the existing shareholders. There's no free lunch here.

But hasn't anyone else noticed that SoftBank appears to be buying in at $23/share and the current Intel stock price is $46/share ?

I'm obviously missing something ...

 

[Xebec]

I'm also missing something about the financial benefits of this.

@hist78 initially claimed this was a cash infusion into Intel by SoftBank. If it's just a share purchase, I don't see how it could be. If it's some more complicated transaction involving Intel "treasury stock" (not an expert on what that might be), perhaps so. If it's done by printing more shares to sell (as is sometimes done to finance stock options), then's it's dilutive for the existing shareholders. There's no free lunch here.

But hasn't anyone else noticed that SoftBank appears to be buying in at $23/share and the current Intel stock price is $46/share ?

I'm obviously missing something ...

Per Reuters:

"SoftBank's investment will come via a primary issuance of common stock by Intel"

I think that means Intel created new shares, and the value paid for them went directly to Intel itself.

However, that does dilute the % of the company that other shareholders own (and effectively EPS goes down), though there's probably an argument for "In return, the company got $2B in cash, and this signals a little bit of bullishness from a new/major investor".

 

[blueone]

I'm also missing something about the financial benefits of this.

@hist78 initially claimed this was a cash infusion into Intel by SoftBank. If it's just a share purchase, I don't see how it could be. If it's some more complicated transaction involving Intel "treasury stock" (not an expert on what that might be), perhaps so. If it's done by printing more shares to sell (as is sometimes done to finance stock options), then's it's dilutive for the existing shareholders. There's no free lunch here.

But hasn't anyone else noticed that SoftBank appears to be buying in at $23/share and the current Intel stock price is $46/share ?

I'm obviously missing something ...

What you're missing is that this is an old thread, and the closing price on Aug 18, 2025 was $23.66. So Softbank probably got a slight discount. Intel sold Softbank treasury shares, which is how Intel got the cash directly. Any increase in shares held by shareholders is dilutive. Regarding your question, yes, Softbank doubled its investment in about six months.

 

[tooLongInEDA]

What you're missing is that this is an old thread, and the closing price on Aug 18, 2025 was $23.66. So Softbank probably got a slight discount. Intel sold Softbank treasury shares, which is how Intel got the cash directly. Any increase in shares held by shareholders is dilutive. Regarding your question, yes, Softbank doubled its investment in about six months.

Thanks, I'd assumed this was "new news" ! So it was dilutive (whether there was a discount or not). Good deal for SoftBank though.

 

[blueone]

Thanks, I'd assumed this was "new news" ! So it was dilutive (whether there was a discount or not). Good deal for SoftBank though.

Some traders move the market for a stock just because they buy or sell; they are market movers. I think this was the case with Softbank and INTC. A recent example of this happening with another stock was when Berkshire Hathaway bought a bunch of Google shares.