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U.S. government takes 10% stake in Intel

(www.cnbc.com)
607 points givemeethekeys | 1 comments | 22 Aug 25 21:01 UTC | HN request time: 0.215s | source
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MyOutfitIsVague ◴[22 Aug 25 21:43 UTC] No.44990202[source]▶
> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company

> The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars

I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?

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cvoss ◴[22 Aug 25 21:52 UTC] No.44990304[source]▶
The answer is in the paragraph in between the two you quoted from. The money for the purchase has already been appropriated by Congress and awarded to Intel. The awards didn't previously have this giant string attached where Intel gives stock in return. But now they do.

And it makes sense that Intel is spinning it as a generous investment from the gov't, but the gov't is spinning it as a free gift from Intel. Neither account really paints the full picture, but each one paints themselves as coming out ahead.

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m4rtink ◴[22 Aug 25 22:24 UTC] No.44990618[source]▶
Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?

Not sure how anyone can believe anything that was agreed will hold in such an environment. :P

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1. topspin ◴[23 Aug 25 05:53 UTC] No.44993568[source]▶
> Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?

There has been some changing of deals on Intel's part as well, with indefinite delays on US fab buildouts the US passed a bill to subsidize. Now the US is taking some equity for its debt.

Far more dramatic Government intervention took place in 2009 when the US bailed out domestic automakers, including equity. Don't recall as much angst about that among the laptop class. Because Obama.