Intel reportedly offered up to $5 billion by Apollo

News of Apollo Global Management’s interest comes after mobile chip giant Qualcomm approached Intel in recent days about a possible acquisition of the chipmaker.

Intel has reportedly received an investment offer of up to $5 billion from alternative asset management firm Apollo Global Management.

Citing unnamed sources, Bloomberg reported Sunday that Apollo had approached the struggling semiconductor giant about a possible equity investment in recent days and said Intel executives were now exploring the offer.

(Related article: 6 Big Intel Changes and Wins Highlighted by CEO: AWS Chip Deal, Independent Foundry, Factory Delays)

The financial publication stressed, however, that the deal was not set in stone.

Intel’s stock price was up more than 4% in premarket trading Monday.

Apollo’s interest in mobile chip giant Qualcomm has been mooted by Intel in recent days in a possible acquisition of the chipmaker, The Wall Street Journal reported Friday. A new Reuters report Saturday says Qualcomm CEO Cristiano Amon is closely involved in the move and is exploring different acquisition scenarios.

All this comes as Intel prepares to cut more than 15,000 jobs and more than $10 billion in costs in response to worsening financial conditions, while CEO Pat Gelsinger pushes the chipmaker to take the final step in its four-year turnaround plan. The company’s stock price has fallen 54% since the beginning of the year.

A week ago, Gelsinger unveiled major changes at Intel that he said will help the semiconductor giant improve its profitability and competitiveness. Those changes include transforming its contract chipmaking business, Intel Foundry, into an independent foundry, delaying the construction of new facilities in Europe, reorganizing some product groups under its core businesses, doubling its x86 business, and reducing its real estate portfolio by about two-thirds.

Last week, Intel also unveiled a “multi-year, multi-billion dollar framework” in which it will design and manufacture custom chips for Amazon Web Services. Additionally, the company said it has received up to $3 billion from the Biden administration to help the U.S. military improve its capabilities and secure its domestic supply chain.