In a significant development for the semiconductor industry, Intel Corporation has entered into an agreement with the U.S. government, resulting in the government acquiring a 9.9% equity stake in the company for $8.9 billion. This transaction, announced on August 22, 2025, was facilitated by the law firm Skadden, Arps, Slate, Meagher & Flom LLP, which has a history of representing Intel in major transactions, including an $11 billion deal with Apollo Global Management in 2024.
Under the terms of the agreement, the U.S. government will purchase shares at $20.47 each, approximately $4 below Intel’s closing share price of $24.80 at the time of the announcement. This move is part of a broader strategy by the government to invest in critical industries and strengthen domestic manufacturing capabilities.
Skadden’s involvement in this deal follows its earlier commitment to provide $100 million in pro bono legal services to causes supported by the Trump administration. This pledge was part of a broader initiative by several major law firms to align with the administration’s priorities and avoid potential executive actions.
Intel has acknowledged potential risks associated with the government’s investment, including possible challenges in international markets and restrictions on future government funding. Despite these concerns, the deal is seen as a step toward improving relations between President Trump and Intel CEO Lip-Bu Tan, following previous tensions.
President Trump has indicated plans to pursue similar agreements with other companies, signaling a continued focus on public-private partnerships to bolster key industries.
Intel’s stock performance reflects the market’s response to these developments. As of August 25, 2025, Intel’s stock price stands at $24.55, with a slight decrease of 1.11% from the previous close. The stock has experienced an intraday high of $25.80 and a low of $24.37, with a trading volume of over 156 million shares.
This transaction underscores the evolving landscape of public-private collaborations in the technology sector, with legal firms like Skadden playing a pivotal role in navigating complex agreements that have significant implications for both corporate strategy and national policy.