Intel scores $2B investment from Japan's SoftBank, shares jump after-hours

[Intel Headquarters]
JasonDoiy/iStock Unreleased via Getty Images

Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]) +5.3% post-market Monday after announcing a definitive securities purchase agreement in which SoftBank (OTCPK:SFTBY [https://seekingalpha.com/symbol/SFTBY]) (OTCPK:SFTBF [https://seekingalpha.com/symbol/SFTBF]) will make a $2B investment [https://seekingalpha.com/pr/20204353-softbank-group-and-intel-corporation-sign-2b-investment-agreement] in Intel common stock, paying $23/share.

"We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership," Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]) CEO Lip-Bu Tan said.

"This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," Softbank (OTCPK:SFTBY [https://seekingalpha.com/symbol/SFTBY]) (OTCPK:SFTBF [https://seekingalpha.com/symbol/SFTBF]) Chairman and CEO Masayoshi Son said.

Bloomberg reported earlier on Monday [https://seekingalpha.com/news/4486650-trump-administration-considers-taking-10-percent-stake-in-intel-as-plan-develops-report] that the U.S. government is in talks to take a 10% stake in Intel (INTC [https://seekingalpha.com/symbol/INTC]).

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