Intel sells off its entire shares in Arm for US$147 million amid cost-cutting efforts
The sale barely puts a dent in the tech giant's wider financial woes though, as it reported a loss of US$1.6 billion in the last quarter. #intel #tech #finance
Image: Intel
Intel is offloading its entire 1.18 million shares in Arm, raising around US$147 million.
The tech giant is struggling with significant financial challenges, and the sale forms part of a broader strategy to shore up cash reserves as it battles to stabilise its shaky financial footing.
Intel’s divestment in Arm comes against the backdrop of a broader sell-off. The company has also liquidated its stake in cybersecurity firm ZeroFox and reduced its holdings in Astera Labs, a company that plays an important role in connectivity platforms for enterprise hardware.
However, the US$147 million from the Arm sale barely puts a dent in Intel’s wider financial woes. Earlier, it reported a US$120 million net loss on its equity investments for the quarter, contributing to a staggering US$1.6 billion overall loss. It’s a rather grim picture of Intel’s current situation, where cash is king, and even strategic investments are on the chopping block.
The broader context for these divestments is Intel’s ongoing financial struggle, which was thrown into sharp relief earlier this month when the company’s earnings report sent its stock plummeting by 33%, wiping out billions in market value. In a bid to stem the bleeding, Intel is also cutting 15,000 jobs and has taken the drastic step of suspending its dividend.
Intel is not just trimming the fat – it is conserving every dollar now, and it’s clear that tough choices are being made.
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