As he lived in a tent and battled to provide for his family, Hussam al-Masri, a Reuters journalist killed by Israeli fire on Monday while running a live video feed at Gaza's Nasser Hospital, covered the suffering of civilians during the conflict. According to journalist colleagues, Masri, 49, was a seasoned cameraman who was well-liked by Gaza's close-knit community of reporters because of his upbeat demeanor in the most perilous circumstances. In the months before his death, he would say, "Tomorrow will be better," despite the fact that the Palestinian enclave was becoming increasingly desolate and hungry. That was the conclusion of his final discussion with Mohamed Salem, a senior Reuters visuals journalist who had collaborated with Masri in Rafah, in southern Gaza, last year and had known him since 2003. Salem, who left Gaza later in 2024 but stayed in daily contact with Masri until Monday morning, said he was a pleasure to work with because of his smiles and o...
President Donald Trump announced Friday that the United States would acquire a 10% stake in Intel (INTC.O), opening a new tab under a deal with the financially troubled chipmaker that turns government grants into equity shares. This is the White House's most recent extraordinary intervention in corporate America.
Following Trump's recent statement that Intel CEO Lip-Bu Tan should resign due to conflicts of interest, the agreement improves relations between the two men. It will guarantee that roughly $10 billion will be given to the chipmaker to build or expand factories in the United States.
The deal calls for the U.S. to pay $8.9 billion, or $20.47 per share, for a 9.9% stake in Intel. This is roughly $4 less than Intel's closing share price of $24.80 on Friday.
The $5.7 billion in unpaid grants from the Biden-era CHIPS Act and the $3.2 billion given to Intel for the Secure Enclave program—also given under Trump's predecessor, Democratic President Joe Biden—will be used to pay for the purchase of the 433.3 million Intel shares.
After closing up 5.5% during regular trading, Intel's stock increased by about 1% during Friday's extended session.
According to a White House official, Trump and Tan met on Friday. That came after Trump met with the CEO of Intel on August 11 and demanded that Tan step down due to his connections to Chinese companies.
"He came in hoping to keep his job, and he gave us $10 billion for the US in the end. Thus, we received $10 billion," Trump stated on Friday.On X, Commerce Secretary Howard Lutnick stated that Tan had reached an agreement "that's fair to Intel and fair to the American people."
CATCHING UP
Along with a U.S. government agreement that permits AI chip giant Nvidia NVDA.O to sell its H20 chips to China in exchange for 15% of those sales, the Intel investment represents the most recent unusual agreement with U.S. companies.
The Pentagon's agreement to increase rare earth magnet production by becoming the largest shareholder in a small mining company, MP Materials (MP.N), opens new tab, and the U.S. government's acquisition of a "golden share" with certain veto rights as part of an agreement to permit Japan's Nippon Steel (5401.T), opens new tab, to purchase U.S. Steel are two other recent agreements.
Critics have expressed concern about the federal government's extensive involvement in business affairs, claiming that Trump's actions have created new types of corporate risk.
Japan's SoftBank (9984.T) announced a new tab on Monday to acquire a $2 billion stake in the chip maker ahead of the U.S. deal with Intel.
Intel's ability to overcome its issues is still questioned by some industry observers.
Daniel Morgan, senior portfolio manager at Synovus Trust, highlighted Intel's contract chip manufacturing business, also known as its foundry unit, and stated that the company's issues go beyond a government equity stake or a cash infusion from SoftBank.
Japan's SoftBank (9984.T) announced a new tab on Monday to acquire a $2 billion stake in the chip maker ahead of the U.S. deal with Intel.
Intel's ability to overcome its issues is still questioned by some industry observers.
Daniel Morgan, senior portfolio manager at Synovus Trust, highlighted Intel's contract chip manufacturing business, also known as its foundry unit, and stated that the company's issues go beyond a government equity stake or a cash infusion from SoftBank.
"It will be challenging for the Intel foundry unit to raise enough capital to continue building out more fabs at a reasonable rate without government support or another financially stronger partner," he stated. He went on to say that Intel "needs to catch up with TSMC from a technological perspective to attract business."
According to Intel, the government's ownership stake will be passive and excludes a board seat. When shareholder approval is required, the government will have to vote with Intel's board, with "limited exceptions." The exceptions were not specified by Intel.
A five-year warrant for an extra 5% of Intel stock, valued at $20 per share, is also included in the equity stake. Should Intel lose control of the foundry business, the United States may utilize this warrant.
According to Intel, the government's ownership stake will be passive and excludes a board seat. When shareholder approval is required, the government will have to vote with Intel's board, with "limited exceptions." The exceptions were not specified by Intel.
A five-year warrant for an extra 5% of Intel stock, valued at $20 per share, is also included in the equity stake. Should Intel lose control of the foundry business, the United States may utilize this warrant.
Analysts predicted that federal support would allow Intel more leeway to turn around its failing foundry business, but the company lost market share to Advanced Micro Devices (AMD.O) and gave up the AI market to Nvidia, and it has been opening a new chapter in its central processor business for a number of years. Additionally, it has had trouble drawing clients to its new factories.
Tan, who took over as CEO in March, has been entrusted with reviving the iconic American chipmaker, which saw its first annual loss since 1986 in 2024, totaling $18.8 billion. 2021 was the company's most recent fiscal year with positive adjusted free cash flow.
Tan, who took over as CEO in March, has been entrusted with reviving the iconic American chipmaker, which saw its first annual loss since 1986 in 2024, totaling $18.8 billion. 2021 was the company's most recent fiscal year with positive adjusted free cash flow.