I can’t think of a single acquisition where Intel was successful, will this 6B be money well spent ?
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From Bloomberg's piece:
"At $5.4 billion, the Intel Corp. chief executive officer is paying over 35-times last year’s earnings and 60% more than it was worth at the start of the week. Lofty premiums can often be justified when the target is expanding quickly and is likely to grow into that valuation. Tower is not such a company.
...
Yet Gelsinger is furiously driving Intel into a new future, one that has the world’s biggest maker of computer processors also manufacturing chips for outside clients. This foundry strategy will pit the Californian company against giants Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Corp. Getting revenue from external customers would help Intel pay for the escalating cost of technology development and production capacity, an area where the once-mighty Goliath has faltered in recent years.
This deal, and that price, betrays his impatience."
"Those that do not remember the past are condemned to repeat it"
https://www.bloomberg.com/opinion/articles/2022-02-16/intel-s-paying-a-high-cost-for-its-ambition-with-its-purchase-of-israel-s-tower?srnd=premium
Another thing Intel can’t afford as it is way over its head in every push.
They’ll sell it for half that in four years after completely mismanaging it.
A wealth of knowledge about what not to do in the future
https://www.intc.com/news-events/press-releases/detail/1527/intel-to-acquire-tower-semiconductor-for-5-4-billion
I think that will be a pretty expensive lesson for Intel.
Of course not