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President Donald Trump met with Intel Corp. Chief Executive Officer Lip-Bu Tan at the White House to finalize a deal giving the US government a nearly 10% equity stake in the beleaguered chipmaker.
Under the Friday agreement, the US will receive 433,323,000 shares of common stock — representing 9.9% of the fully diluted common shares in Intel — with the government pledging to release nearly $8.87 billion in funding under the Chips and Science Act, people familiar with the terms said, speaking on condition of anonymity to outline the deal before it was formally unveiled.
That represents the remaining Chips Act funding that was awarded but not yet distributed to Intel, they said. The shares are non-voting and there is no board seat for the US government, according to the people. Tan was at the Commerce Department building on Friday finalizing the deal.
The US taking partial ownership marks a stunning level of intervention in an American company, cutting against the principles of free-market capitalism that investors and policymakers have long considered sacrosanct except in the most extraordinary situations such as war or a systemic economic crisis.
Today's show features:
- Bloomberg News Economic Statecraft Reporter Joe Deaux on the US officially taking a nearly 10% stake in Intel
- Bloomberg TV Radio International Economics and Policy Correspondent Mike McKee on his takeaways from at the Jackson Hole Economic Symposium and Bloomberg Economics US and Canada Economist Stuart Paul on Canada plan remove retaliatory tariffs on US products
- Emily Green, Head of Private Wealth Management at Ellevest, on Friday's market rally
- Tejpaul Bhatia, CEO of Axiom, on the business of space travel and the company’s role in an upcoming launch of a data server to the International Space Station
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