WEBVTT - Intel Gets Multibillion-Dollar Apollo Offer as Qualcomm Circles 0:00:02.920 --> 0:00:10.719 Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg business 0:00:10.720 --> 0:00:13.960 Week Inside from the reporters and editors who bring you 0:00:14.000 --> 0:00:18.319 America's most trusted business magazine, plus global business, finance and 0:00:18.400 --> 0:00:22.840 tech news. The Bloomberg Business Week Podcast with Carol Messer 0:00:23.040 --> 0:00:27.600 and Tim Stenebeck from Bloomberg Radio, we gotta. 0:00:27.360 --> 0:00:28.440 Talk a bit more about Intel. 0:00:28.600 --> 0:00:31.040 I'm looking at a two day game because we've got 0:00:31.080 --> 0:00:33.560 a headline late Friday before the close. But you're looking 0:00:33.560 --> 0:00:35.880 at Intel shares now up about seven percent in the 0:00:35.920 --> 0:00:38.080 past to trading days, and so we're trying to figure 0:00:38.080 --> 0:00:39.200 out what comes next for Intel. 0:00:39.280 --> 0:00:39.480 Yeah. 0:00:39.479 --> 0:00:41.519 I mean, look, we're talking about this Bloomberg exclusive on 0:00:41.520 --> 0:00:43.800 Apollo Global Manager that's throwing it's it's hat and a 0:00:43.800 --> 0:00:46.559 potential financial investment into the Intel ring as well. So 0:00:46.640 --> 0:00:49.199 lots of just scotts, let's bring in Leanna Baker is 0:00:49.200 --> 0:00:51.640 Managing editor of the Bloomberg News Deals team here in 0:00:51.640 --> 0:00:53.440 the studio. Great to see you, and from our San 0:00:53.479 --> 0:00:57.320 Francisco bureau, Ian King, Bloomberg News US Semiconductor and Networking 0:00:57.560 --> 0:01:00.280 reporter Ian I want to start with you in tell 0:01:00.560 --> 0:01:03.600 very popular all of a sudden among all these entities 0:01:03.960 --> 0:01:06.640 let's talk about Qualcom and it's interest what you find out. 0:01:07.760 --> 0:01:10.000 Yeah, I mean we have to sort of point out 0:01:10.240 --> 0:01:14.720 that neither company is confirmed or said anything publicly about this, 0:01:14.840 --> 0:01:17.720 So at this point we're relying upon our own reporting 0:01:17.720 --> 0:01:21.200 and everybody else is reporting. Our understanding is that there 0:01:21.200 --> 0:01:24.840 has been some conversation at some kind of level about 0:01:24.880 --> 0:01:29.240 the possibility of acquiring Intel, and you know, to sort 0:01:29.240 --> 0:01:30.960 of flip it back to what you guys were saying, 0:01:31.200 --> 0:01:34.640 Intel is kind of at a historically sort of vulnerable 0:01:34.720 --> 0:01:37.840 point in terms of obviously share price, in terms of 0:01:37.880 --> 0:01:41.880 where its operations are. Its management believe that it's at 0:01:42.000 --> 0:01:43.959 kind of a low point before a big upswing that 0:01:44.000 --> 0:01:47.720 it's had to spend really heavily. Others are less sanguine 0:01:47.760 --> 0:01:50.520 about this, are sorry, are more worried about where it 0:01:50.640 --> 0:01:54.240 is and worried that perhaps it would be better it 0:01:54.280 --> 0:01:55.720 would be better off in other hands. 0:01:55.960 --> 0:01:58.080 Yeah, it's kind of fascinating to figure out what's the 0:01:58.160 --> 0:02:01.840 right way forward, as you have reported on so well, 0:02:02.600 --> 0:02:04.880 in that this has been long and coming. When it 0:02:04.880 --> 0:02:07.000 comes to Intel, Leanna, I want to bring you back 0:02:07.040 --> 0:02:10.320 into this. There's the Apollo story that you guys. 0:02:10.080 --> 0:02:11.720 Have put out there. At Bloombery Exclusive. 0:02:12.000 --> 0:02:14.440 What do we know about a possible deal where Apollo 0:02:14.520 --> 0:02:16.200 makes a pretty substantial investment. 0:02:16.880 --> 0:02:19.360 Apollo is already a partner of Intel. Remember they have 0:02:19.360 --> 0:02:23.800 a joint venture with Intel in their factory in Ireland, 0:02:24.080 --> 0:02:26.959 So it's not surprising that Apollo would put their hat 0:02:26.960 --> 0:02:29.560 in the ring. That said, we don't know if Intel's 0:02:29.600 --> 0:02:31.600 going to accept this investment. We heard it's up to 0:02:31.680 --> 0:02:34.160 five billion. We don't have any terms. We said it's 0:02:34.160 --> 0:02:36.680 an equity like investment. We don't know if it comes 0:02:36.680 --> 0:02:39.320 with a board seat or what Apollo would ask for 0:02:39.480 --> 0:02:41.680 to make this cash infusion. But it does show that 0:02:41.760 --> 0:02:44.480 Intel's board has some tough decisions to make on which 0:02:44.520 --> 0:02:47.320 path forward. Does it go with Qualcomm, does it go 0:02:47.400 --> 0:02:50.040 with Apollo, Could it go with Apollo and then still 0:02:50.240 --> 0:02:53.600 you know, go with Qualcom. One thing we know for sure, Broadcom, 0:02:53.600 --> 0:02:56.799 which is another name in the space which analysts have tipped, 0:02:56.880 --> 0:02:59.760 is another potential acquirir of Intel. We've reported that currently 0:02:59.760 --> 0:03:01.800 they're not evaluating an offer. 0:03:01.520 --> 0:03:03.160 For I'm curious about Apollo. 0:03:03.280 --> 0:03:06.560 Is this about protecting its investment already in Intel, or 0:03:06.600 --> 0:03:09.280 is it because they're really interested and they see something here? 0:03:09.480 --> 0:03:13.680 Further Paulo is definitely opportunistic and they love to get 0:03:13.960 --> 0:03:18.119 their hands in really complicated situations. They're also turnaround specialists 0:03:18.560 --> 0:03:22.320 and they have some experience in semiconductors. Last year they 0:03:22.320 --> 0:03:25.239 put in about nine hundred million into Western Digital, which 0:03:25.280 --> 0:03:29.560 is another sort of struggling chip maker right now, Apollo 0:03:29.720 --> 0:03:32.600 though it has you know, it's work cut out for 0:03:32.639 --> 0:03:34.880 them if they do take this investment. How much influence 0:03:34.960 --> 0:03:37.760 will they have an Intel, which has its own management team, 0:03:37.840 --> 0:03:40.280 and Apollo might have its own interest too on making 0:03:40.320 --> 0:03:42.119 sure their investment, you know, makes money. 0:03:42.240 --> 0:03:44.240 Yeah, I mean, look, it's also an indication of obviously 0:03:44.280 --> 0:03:47.720 how excited Apollo are about chip makers as well. I mean, 0:03:47.800 --> 0:03:49.240 is there are their prospects they're going to want to 0:03:49.280 --> 0:03:50.480 go further in other places. 0:03:51.920 --> 0:03:54.800 For now, all we know is that they're an investor 0:03:54.840 --> 0:03:58.240 in Western Digital, and they're an investor and joint venture 0:03:58.280 --> 0:04:00.800 partner and Intel, and they're looking to to do more 0:04:01.200 --> 0:04:04.480 with Intel. But we should also consider that they're an 0:04:04.520 --> 0:04:07.240 American investor, and that's something that's really important here. We 0:04:07.240 --> 0:04:10.920 didn't talk about the US government angle, so I'm sure 0:04:10.960 --> 0:04:12.800 the US government would like to see some sort of 0:04:13.000 --> 0:04:16.279 US solution to this without a foreign investor. And another 0:04:16.279 --> 0:04:19.400 thing to mention is that any investment from Apollo or 0:04:19.440 --> 0:04:22.880 someone similar would close a lot faster than a long 0:04:23.000 --> 0:04:27.000 drawn out merger with a rival like Qualcott. That's something 0:04:27.080 --> 0:04:29.440 that's going to take a long time to play out, 0:04:29.480 --> 0:04:31.200 even if they do get to the finish line. 0:04:31.240 --> 0:04:32.800 All right, So Ian, come on back in here. 0:04:32.839 --> 0:04:34.680 This is something we've talked about a lot with you 0:04:34.839 --> 0:04:37.560 about the national security concerns and why this is such 0:04:37.560 --> 0:04:40.840 an important company, certainly to the US government. How are 0:04:40.880 --> 0:04:44.480 you You've covered this company for so long and it's 0:04:44.560 --> 0:04:46.760 kind of amazing to see where we are with this 0:04:46.800 --> 0:04:49.200 company right now. How are you thinking about the different 0:04:49.200 --> 0:04:53.440 parties that are interested about Intel's future and what happens 0:04:53.480 --> 0:04:56.080 from here and what you are hearing internally from the company. 0:04:56.640 --> 0:05:00.280 Yeah, I mean it's a very complicated situation. As Honor 0:05:00.320 --> 0:05:03.560 has just alluded to. It's not just a case of 0:05:03.640 --> 0:05:07.360 two companies looking at each other and sort of deciding 0:05:07.400 --> 0:05:10.920 whether it makes sense for them to do this, even Intel, 0:05:11.320 --> 0:05:14.560 there are multiple parts to Intel. Whether perhaps qualt Com 0:05:14.680 --> 0:05:18.640 would just be interested in Intel's design efforts, which would 0:05:18.640 --> 0:05:20.839 get it into the PC market, which would get it 0:05:20.880 --> 0:05:25.599 into the server market. Qualcomm historically has said absolutely no 0:05:25.760 --> 0:05:28.320 way do we want to become a manufacturing company. So 0:05:28.600 --> 0:05:31.520 if that's still the case, then what happens to Intel's 0:05:31.520 --> 0:05:34.760 manufacturing operations? And that's where the US government has a 0:05:34.800 --> 0:05:39.480 massive interest in bringing back manufacturing to this country, revitalizing 0:05:39.720 --> 0:05:42.680 manufacturing in this country. And then guess what, There's a 0:05:42.720 --> 0:05:45.040 country called China out there which has a massive say 0:05:45.040 --> 0:05:48.159 in this as well. China is the largest market for 0:05:48.200 --> 0:05:51.039 so may conductors. Both Intel and Qualcomm do a huge 0:05:51.080 --> 0:05:54.520 amount of business there. China is going to have an 0:05:54.640 --> 0:05:57.039 absolute say when it comes to approving this kind of 0:05:57.040 --> 0:05:57.400 a deal. 0:05:57.720 --> 0:05:59.720 But does that mean then, in to that point that 0:05:59.800 --> 0:06:02.400 the Apollo deal looks much simpler if you're pack Elsinger 0:06:02.400 --> 0:06:04.120 and try to make you know a kind of a 0:06:04.160 --> 0:06:06.800 decision or think about where to go with this as well, 0:06:06.880 --> 0:06:09.760 does it make an Apollo move much clearer and simpler 0:06:09.760 --> 0:06:12.159 and less of the anti trust concerns and others that 0:06:12.160 --> 0:06:12.800 you've outlined. 0:06:13.440 --> 0:06:16.480 Yeah, I mean it's a much much smaller deal. And 0:06:16.520 --> 0:06:19.800 really all it essentially would be doing, if it's at 0:06:19.800 --> 0:06:21.680 the level that we understand it is, will be to 0:06:21.720 --> 0:06:25.560 sort of prop up the current plan. Basically, all of 0:06:25.600 --> 0:06:28.200 these investments and Intel has been bringing in into its 0:06:28.200 --> 0:06:32.040 factories from Apollo, from others are essentially bridge loans. Basically, 0:06:32.040 --> 0:06:34.039 it's saying, hey, we're going to build this factory. Help 0:06:34.160 --> 0:06:36.000 us out to build it out, and we'll pay you 0:06:36.080 --> 0:06:38.480 back with the profits we get from it later. Intel 0:06:38.560 --> 0:06:41.839 retains control in these kind of situations. Five billion dollars 0:06:41.920 --> 0:06:43.240 is a lot of money, but it's not in the 0:06:43.320 --> 0:06:46.320 chip business, right, plant cost twenty Yeah. 0:06:46.160 --> 0:06:47.960 It goes really quickly. Right, Hey, you know, I think 0:06:47.960 --> 0:06:48.760 it's kind of interesting. 0:06:48.800 --> 0:06:52.839 There's another story in the Bloomberg about TSMC, Taiwan Semiconductor 0:06:52.839 --> 0:06:57.080 and Samsung discussing building major new factories in the UAE. 0:06:57.200 --> 0:06:58.559 This is coming from the Wall Street Journal. 0:06:58.560 --> 0:07:01.200 So I think about this story. It's Intel specific, but 0:07:01.240 --> 0:07:04.080 there's so much going on globally in the semi space 0:07:04.120 --> 0:07:06.360 as other companies are kind of figuring out their path 0:07:06.440 --> 0:07:10.240 going forward. When it comes to Intel in what is 0:07:10.280 --> 0:07:12.560 the value beyond the national security concerns? 0:07:12.640 --> 0:07:13.080 Is it that. 0:07:13.000 --> 0:07:16.520 It's a maker of chips a designer of chips? Like, 0:07:16.640 --> 0:07:18.440 where is the real value going forward? 0:07:18.600 --> 0:07:19.000 Or both? 0:07:20.240 --> 0:07:20.960 Absolutely? 0:07:21.040 --> 0:07:21.320 Both? 0:07:21.480 --> 0:07:25.720 Right, it's diminished as a franchise in PCs, but it's 0:07:25.720 --> 0:07:29.640 still seventy five eighty five percent of the market. It's 0:07:29.760 --> 0:07:33.840 diminished in servers, but it's still eighty percent of the market. 0:07:34.400 --> 0:07:37.960 So those are incredible franchises with the right products. Maybe 0:07:38.000 --> 0:07:40.920 they revitalize, maybe then ever get back to ninety nine percent, 0:07:40.960 --> 0:07:43.360 which they've been at. But eighty percent of a market 0:07:43.400 --> 0:07:45.040 isn't a bad position to be in if you can 0:07:45.040 --> 0:07:47.920 do that in a profitable way. It's factories up until 0:07:48.040 --> 0:07:51.000 not too long ago were the best in the industry. Okay, 0:07:51.520 --> 0:07:53.720 if you can throw the capital at them, if you 0:07:53.760 --> 0:07:57.080 can get the volume the orders, maybe it becomes a 0:07:57.160 --> 0:08:02.280 valuable and absolutely essential asset again. So it's not dead yet, right, 0:08:02.320 --> 0:08:04.440 I mean, we're talking about picking over the bones, but 0:08:04.800 --> 0:08:06.160 it's not dead yet. 0:08:06.760 --> 0:08:08.760 How much should we be thinking about other players in 0:08:08.800 --> 0:08:10.720 this sector as well? I mean Broadcom sitting on the 0:08:10.760 --> 0:08:13.200 sidelines for now. Is there any chance anything is going 0:08:13.200 --> 0:08:16.280 to get exciting for Broadcom when we're thinking about this feature? 0:08:17.040 --> 0:08:19.960 I mean, the best person to ask will be hot Time, 0:08:20.080 --> 0:08:22.239 the CEO. He was asked out recently on his earnings 0:08:22.240 --> 0:08:24.760 and he said, look, I'm quite happy trying to you know, 0:08:24.880 --> 0:08:27.880 make VMware. The acquisition they made work a couple of 0:08:27.960 --> 0:08:30.760 years before I'll be the other side of that. And 0:08:30.800 --> 0:08:32.959 he had a big smile on his face figuratively when 0:08:33.000 --> 0:08:35.120 he was saying this, because they were asking him, Hey, 0:08:35.200 --> 0:08:39.680 are you interested, so he was basically saying, not right now. 0:08:39.880 --> 0:08:41.640 Yeah, come on back in here. I am curious. 0:08:41.679 --> 0:08:43.920 I'm sure you had a pretty busy weekend, which always 0:08:43.920 --> 0:08:46.680 happens with the M and A activity and the M 0:08:46.679 --> 0:08:48.960 and A world. What are you hearing from other bankers 0:08:49.080 --> 0:08:51.160 or other bankers kind of wait a minute, we've got 0:08:51.200 --> 0:08:53.160 to be talking to our clients like there's other things 0:08:53.160 --> 0:08:54.520 that might pop up. 0:08:55.040 --> 0:08:58.320 It's funny, there's two counts of bankers, it seems, around 0:08:58.320 --> 0:09:00.840 the situation. There's either the ones working on this deal 0:09:00.880 --> 0:09:02.680 who don't want to talk to us and aren't answering 0:09:02.760 --> 0:09:05.360 their phones, and then there's the ones that are chasing 0:09:05.400 --> 0:09:07.480 this trying to get hired. And then there's the ones 0:09:07.679 --> 0:09:10.080 we're sitting on the sidelines who are saying, Okay, this 0:09:10.120 --> 0:09:13.319 is a really you know, funky deal, Intel, I don't 0:09:13.360 --> 0:09:14.760 know if I want to spend the time on this. 0:09:14.880 --> 0:09:18.240 If you know, it doesn't happen. Qualcomm's other big M 0:09:18.280 --> 0:09:20.800 and A bets never panned out. You might recall they 0:09:20.840 --> 0:09:23.079 bought NX, They tried to buy NXP a few years 0:09:23.120 --> 0:09:25.280 ago and that died. They're going through their own a 0:09:25.280 --> 0:09:27.640 little bit of a transformation to M and A is 0:09:27.720 --> 0:09:30.439 just really hard for some inductor companies. Intel tried to 0:09:30.480 --> 0:09:33.439 buy a company called Tower, which also fell apart when 0:09:33.440 --> 0:09:36.400 the Chinese authorities kind of left it in limbo. So 0:09:36.800 --> 0:09:39.120 it's just a really tough space and you have to 0:09:39.160 --> 0:09:42.280 know where to invest your time if you're an investment banker, 0:09:42.320 --> 0:09:44.600 to see you know which bets are going to pay off, 0:09:44.640 --> 0:09:46.920 because in chips it's been really difficult. 0:09:47.440 --> 0:09:50.040 But it's interesting, isn't it, given that the movement we've 0:09:50.040 --> 0:09:52.120 seen in share prices in this sector as well, This 0:09:52.240 --> 0:09:55.160 is clearly very hot property and you kind of think 0:09:55.200 --> 0:09:57.439 that could spur further deals down the line. Or is 0:09:57.480 --> 0:09:58.839 it more of a case that we're looking at these 0:09:58.880 --> 0:10:01.200 individual big names defying their positions. 0:10:01.760 --> 0:10:04.800 Ian would know more about why Intel is a unique 0:10:04.840 --> 0:10:06.920 situation right now. I think their earnings report in the 0:10:06.960 --> 0:10:08.920 summer and what's been happening the past few years has 0:10:08.920 --> 0:10:11.319 made them has made them vulnerable. As he said to 0:10:11.440 --> 0:10:14.480 different you know, M and A overtures the other deals 0:10:14.480 --> 0:10:16.839 in the semiconductor space have been a lot smaller and 0:10:16.960 --> 0:10:21.000 video we've reported does acquisitions, but you know, not that large, 0:10:21.120 --> 0:10:25.320 and they usually do still attract scrutiny from regulators. So 0:10:26.200 --> 0:10:28.480 these companies are so big that whatever they do, even 0:10:28.480 --> 0:10:30.719 if it's a small tuck in acquisition, it's going to 0:10:30.800 --> 0:10:32.920 get some attention when. 0:10:32.720 --> 0:10:34.640 It comes to the regulatory concerns here, because it's something 0:10:34.679 --> 0:10:36.680 that comes up a lot on these conversations as well, 0:10:36.920 --> 0:10:40.480 is that regulators in Europe, Is it the US or 0:10:40.520 --> 0:10:42.319 is it you know, coming from side of those markets. 0:10:42.400 --> 0:10:44.400 It's all of the above. Actually, when you announce the 0:10:44.480 --> 0:10:48.200 je tekature. Yeah, these companies, as Ian mentioned, are global, 0:10:48.240 --> 0:10:51.800 but definitely China the regulator their sammer. They weigh in 0:10:52.080 --> 0:10:53.840 on these deals or sometimes they don't weigh in at 0:10:53.840 --> 0:10:55.880 all and they're left in limbo, and that leads to 0:10:55.920 --> 0:10:59.440 deals dying that EU obviously will have a say, and 0:10:59.480 --> 0:11:03.800 then we have US market and then any country where 0:11:03.840 --> 0:11:05.840 these companies do business we'll have a say. 0:11:06.000 --> 0:11:07.880 Hey, you know one thing I wanted to ask you Ian, 0:11:08.000 --> 0:11:10.800 is I think about you know, AMD wasn't always as 0:11:10.800 --> 0:11:13.360 big a threat to Intel, right, Intel was really the 0:11:13.360 --> 0:11:15.200 big player and then I think about and video was 0:11:15.240 --> 0:11:18.640 not always a household name. Uh, And wasn't that you 0:11:18.640 --> 0:11:20.280 know when we bring up the semi space, wasn't the 0:11:20.320 --> 0:11:22.800 company we always kind of is a go to companies 0:11:22.840 --> 0:11:26.640 can reboot companies, consumer company can shift strategies, that can 0:11:26.640 --> 0:11:31.120 do acquisitions. So I mean so can Intel likewise, Right 0:11:31.160 --> 0:11:33.400 there is another chapter. 0:11:34.600 --> 0:11:37.680 That's that's what the management is saying. That's what the 0:11:37.720 --> 0:11:41.280 management believe up until now that that you know they're maintaining. Look, hey, 0:11:41.360 --> 0:11:44.000 it's tough. It's tougher than we thought. Maybe we don't 0:11:44.000 --> 0:11:46.600 have the right AI chips out there right now, but 0:11:46.640 --> 0:11:49.400 you know, come on, we have so much inherent value. 0:11:49.760 --> 0:11:51.480 We can we can do this. We can get back 0:11:51.480 --> 0:11:54.840 to what we were, is their pitch. But the flip 0:11:54.840 --> 0:11:57.400 side of that is this is a brutal business. This 0:11:57.440 --> 0:12:01.560 is a really really difficult business, particular manufacturing. You build 0:12:01.559 --> 0:12:04.000 these plants, you don't fill them. They drag you down. 0:12:04.440 --> 0:12:07.000 And that is a situation that Intel is facing, and 0:12:07.040 --> 0:12:09.760 that is why there's so much churn around. It is like, 0:12:10.040 --> 0:12:12.240 is this the opportunity of a lifetime, Is it ever 0:12:12.320 --> 0:12:15.360 going to be this cheap again? Or maybe this is 0:12:15.920 --> 0:12:19.320 Intel on a downward spiral, and there are lots and 0:12:19.360 --> 0:12:22.720 lots of opinions. And that explains what Leander just said, Well, 0:12:22.920 --> 0:12:25.160 how the bankers are viewing it, how Wall Street is 0:12:25.240 --> 0:12:27.200 viewing it. They can't nobody can make their mind up 0:12:27.240 --> 0:12:30.400 right now. All they know is the road that Intel 0:12:30.480 --> 0:12:32.520 is on is a tough one right now. A lot 0:12:32.559 --> 0:12:33.280 has to go right. 0:12:33.400 --> 0:12:35.400 I mean, to that point, does that tell us that 0:12:35.320 --> 0:12:40.360 the AWS deal wasn't as important potentially to investors as 0:12:40.720 --> 0:12:41.520 we thought it was. 0:12:43.000 --> 0:12:46.920 It was a brief shot in the arm. But you know, 0:12:47.160 --> 0:12:50.040 we've seen this happen since Pat Gelsinger came back to 0:12:50.080 --> 0:12:52.640 the company a few short years ago. We have these 0:12:52.679 --> 0:12:55.760 brief moments of hope and then it becomes clear because 0:12:55.800 --> 0:12:58.640 it is clear because it's such a tough business that yes, 0:12:58.760 --> 0:13:01.679 it's a good sign, but the payoff is down the road, 0:13:01.960 --> 0:13:05.040 and the payoff isn't one hundred percent certain at this point. 0:13:05.280 --> 0:13:08.160 And that's I think this constant tension that we're seeing, 0:13:08.240 --> 0:13:10.560 which is maybe they are doing the right thing, but 0:13:10.760 --> 0:13:13.319 good grief, so many things have to go right. And 0:13:13.600 --> 0:13:15.160 on the flip side, if you want to do a 0:13:15.160 --> 0:13:17.040 deal for Intel, so many things have to go right. 0:13:17.080 --> 0:13:21.600 There regulatory approval, financing everything that there's so much at 0:13:21.640 --> 0:13:25.040 stake here. It is such a complicated situation, so difficult 0:13:25.080 --> 0:13:28.640 for management and difficult for bankers, and difficult for regulators 0:13:28.640 --> 0:13:29.720 who are taking a look at this. 0:13:29.920 --> 0:13:31.200 Right we talked about checking boxes. 0:13:31.200 --> 0:13:33.600 There's a lot that has to be checked in order 0:13:33.640 --> 0:13:35.800 for this to something to happen, whether it's a deal 0:13:35.880 --> 0:13:37.920 or some kind of investment. Having said that, I just 0:13:37.960 --> 0:13:40.640 want to ask both of you, So, Leanna, what's is 0:13:40.640 --> 0:13:44.079 there a time frame you're thinking about? You know, these 0:13:44.120 --> 0:13:47.000 are stories that according to sources. I always feel like 0:13:47.000 --> 0:13:49.320 with these things they may or may not happen. So 0:13:49.520 --> 0:13:51.160 what are you thinking in terms of a time frame. 0:13:51.240 --> 0:13:53.480 There's lots to consider about what's next. But I will 0:13:53.480 --> 0:13:56.080 say that time is the enemy of deals, So the 0:13:56.160 --> 0:13:58.240 longer things take you or less likely they are to 0:13:58.280 --> 0:14:02.360 get announced. But that said, there's still so much more 0:14:02.400 --> 0:14:05.960 to report on. So we know Qualcom's made a soft approach, 0:14:06.000 --> 0:14:09.079 but there's no official offer, So there's still maybe in 0:14:09.120 --> 0:14:11.480 the next week or so, we'll find out more about 0:14:11.480 --> 0:14:15.200 how receptive Intel is, what was actually offered and similar 0:14:15.440 --> 0:14:18.800 with the Apollo offer, and are there other names on 0:14:18.840 --> 0:14:22.840 the sidelines? Intel also has a partnership with Brookfield and 0:14:22.920 --> 0:14:26.320 other private equity infrastructure player. We haven't heard that they're 0:14:26.360 --> 0:14:29.200 around this, but certainly now that the Apollo name is 0:14:29.200 --> 0:14:31.200 out there, will other names come out of the woodwork 0:14:31.280 --> 0:14:31.840 real quickly. 0:14:31.880 --> 0:14:33.960 And so you fifteen seconds in terms of a time 0:14:34.000 --> 0:14:36.800 frame you're thinking about for Intel, Yeah. 0:14:36.600 --> 0:14:38.840 I mean some of these deals need to minifese quickly, 0:14:38.920 --> 0:14:41.360 as Leanna just said, But Intel in terms of time 0:14:41.440 --> 0:14:44.160 frame can't afford too many more, if any of the 0:14:44.240 --> 0:14:47.280 kind of disastrous innings reports that we just saw, that's 0:14:47.320 --> 0:14:49.240 going to be a hard stop for them. 0:14:49.240 --> 0:14:50.360 All right, so appreciate it. 0:14:50.400 --> 0:14:53.280 A very big company story and certainly a big story 0:14:53.280 --> 0:14:55.560 on the Bloomberg Today in king US semiconductor and networking 0:14:55.560 --> 0:14:57.920 reporter at Bloomberg News out there in San Francisco, Leanna 0:14:57.920 --> 0:14:59.120 Baker right here in studio. 0:14:59.360 --> 0:15:01.080 She is managing editor of the Deals team, and you 0:15:01.120 --> 0:15:03.040 can read more at Bloomberg dot com. 0:15:03.840 --> 0:15:07.400 You're listening to the Bloomberg Business Week podcast. Catch us 0:15:07.440 --> 0:15:10.680 live weekday afternoons from two to five pm Eastern. Listen 0:15:10.720 --> 0:15:14.080 on Applecarplay and and Broyd Auto with a Bloomberg Business app, 0:15:14.200 --> 0:15:16.600 or watch us live on YouTube. 0:15:17.320 --> 0:15:20.360 Well, we highlight and on a lot about everybody moving 0:15:20.440 --> 0:15:20.840 down south. 0:15:20.880 --> 0:15:22.800 I've had a lot of family members move down south. 0:15:24.600 --> 0:15:26.320 It is it's nice and warm and toasty. 0:15:27.240 --> 0:15:28.960 But in particular, we see a lot of people going 0:15:29.000 --> 0:15:31.360 to South Florida, financial types and more. And as a 0:15:31.400 --> 0:15:34.240 result of that move, how that has led to soaring 0:15:34.280 --> 0:15:36.840 prices of homes, especially among the super rich, which brings 0:15:36.920 --> 0:15:39.920 us to a new record perhaps for the most expensive 0:15:39.920 --> 0:15:42.120 residents in the Miami area. Let's get to it with 0:15:42.240 --> 0:15:45.640 Danny Hertzberg Wilt at the jills Zer Group. It's a 0:15:45.640 --> 0:15:48.280 team within the Coldwell Banker community. It has been ranked 0:15:48.280 --> 0:15:50.360 by Real Trends in the Wall Street Journal as the 0:15:50.480 --> 0:15:52.800 number one real estate team in the nation, Florida and 0:15:52.840 --> 0:15:54.560 Miami for several years. 0:15:54.560 --> 0:15:55.880 Including twenty twenty four. 0:15:55.920 --> 0:15:58.880 Danny joining us from South Florida along with Bloomberg News 0:15:58.920 --> 0:16:02.040 Markets correspondent Abigail Doolittle, who keeps an eye on the 0:16:02.080 --> 0:16:02.920 real estate world. 0:16:02.960 --> 0:16:04.560 She is joining us here in studio. 0:16:04.880 --> 0:16:07.800 Hey, Danny, my understanding is you guys might have some 0:16:07.920 --> 0:16:09.480 news for us about a big closing. 0:16:09.520 --> 0:16:11.120 What can you tell us. 0:16:11.240 --> 0:16:13.040 We do we have some very exciting news. 0:16:13.040 --> 0:16:16.440 First, Thank you so much, Carol, Steven, Abigail, and Bloomberg. 0:16:15.960 --> 0:16:16.920 For having me today. 0:16:17.360 --> 0:16:20.560 We have the record sale closing today and it's the 0:16:20.640 --> 0:16:21.880 highest sale in the history of. 0:16:21.880 --> 0:16:22.680 Miami Dade County. 0:16:23.520 --> 0:16:26.120 So Danny, something to ask about this sale. Not so 0:16:26.240 --> 0:16:29.160 long ago, I can remember Jeff Bezos making a big purchase. 0:16:29.200 --> 0:16:31.040 I feel like it was close to one hundred million, 0:16:31.080 --> 0:16:33.320 and then Ken Griffin was a more than one hundred million. 0:16:33.320 --> 0:16:36.520 So you're saying that this sale is more that it 0:16:36.640 --> 0:16:39.240 tops those well known billionaires. 0:16:40.200 --> 0:16:42.360 So there's only been one sale in the history of 0:16:42.520 --> 0:16:44.840 Miami Dade County that broke one hundred million, which our 0:16:44.840 --> 0:16:46.760 team worked on. I was very proud to see might 0:16:46.840 --> 0:16:49.160 Mom break that record at one hundred and six million, 0:16:49.520 --> 0:16:52.200 and this surpasses that record, So this will be the 0:16:52.280 --> 0:16:57.400 all time highest sale. It's a very significant market update. 0:16:57.520 --> 0:16:59.560 It tells you a lot about the story of Miami 0:16:59.600 --> 0:17:01.800 and the growth of the city and the number of 0:17:01.800 --> 0:17:04.919 billionaires and high net worth individuals moving to Miami and 0:17:04.960 --> 0:17:06.880 all the big companies that have been coming down here. 0:17:07.040 --> 0:17:09.119 Well, let's take into that just a little bit more, Danny, 0:17:09.160 --> 0:17:14.800 because I know that prior to this pandemic gold rush 0:17:14.960 --> 0:17:19.320 for real estate, the biggest sale in Miami if I 0:17:19.359 --> 0:17:21.440 have this correctly, I think that forty seven million and 0:17:21.480 --> 0:17:23.800 twenty fifteen, and then there was another forty seven million 0:17:24.080 --> 0:17:27.919 sale in twenty twelve. Now forty seven million seems like nothing. 0:17:28.119 --> 0:17:29.520 Yeah, yeah, it seems. 0:17:29.280 --> 0:17:34.040 Like packaging perspective context. So has the table really been 0:17:34.080 --> 0:17:34.680 reset here? 0:17:35.640 --> 0:17:36.320 Absolutely? 0:17:36.359 --> 0:17:39.320 So that forty seven million record back in twenty twelve, 0:17:39.359 --> 0:17:42.199 which we participated and was actually on Indian Creek. So 0:17:42.240 --> 0:17:45.040 it's very interesting that the story started there on Indian Creek, 0:17:45.320 --> 0:17:47.680 and then the markets spread throughout the city from Star 0:17:47.760 --> 0:17:50.800 Island to Gables of States North and South through Golden Beach, 0:17:51.400 --> 0:17:53.760 and then for many years, almost a decade, you didn't 0:17:53.760 --> 0:17:56.560 have a sale over fifty and since twenty twenty one, 0:17:57.040 --> 0:17:59.639 we now have had eight sales over fifty million, in 0:18:00.040 --> 0:18:02.679 sales over one hundred million, which is significant, right, and 0:18:02.720 --> 0:18:05.679 the runner up sales are seventy million, seventy five million, 0:18:05.760 --> 0:18:09.760 ninety three million, so very significant numbers for Miami, which 0:18:09.800 --> 0:18:12.280 puts us on par with La New York on Beach 0:18:12.600 --> 0:18:14.120 and all the major global markets. 0:18:14.200 --> 0:18:17.880 Danny step back, lay out this deal that you guys closed, 0:18:17.920 --> 0:18:20.120 What is this deal? Who did it tell us about 0:18:20.119 --> 0:18:23.000 because I believe it involved a couple of properties and 0:18:23.000 --> 0:18:23.840 what the amount was. 0:18:25.000 --> 0:18:28.639 So this was a significant assemblage on Laguarse Island. The 0:18:28.720 --> 0:18:31.439