Wall Street Breakfast Podcast: SoftBank Pours $2B Into Intel

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Intel (INTC) scores $2B investment from Japan’s SoftBank (STFBY), shares jump after-hours. (00:21) Sinclair (SBGI) reportedly offers to merge broadcast TV operations with Tegna (TGNA). (01:11) Crocs (CROX) partnering with NFL for team-branded clogs and charms – report. (02:13)

This is an abridged transcript.

Intel (NASDAQ:INTC) +5.4% pre-market after announcing a definitive securities purchase agreement in which SoftBank (OTCPK:SFTBY) (OTCPK:SFTBF) will make a $2B investment in Intel common stock, paying $23/share.

The deal will put SoftBank (OTCPK:SFTBY) (OTCPK:SFTBF) at number six on the list of largest investors in Intel (NASDAQ:INTC), with an equity stake of slightly less than 2%, according to LSEG data.

Reuters reported that the Japanese firm will not seek a board seat or commit to buying Intel’s chips.

“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) (OTCPK:SFTBF) Chairman and CEO Masayoshi Son said.

Bloomberg reported earlier on Monday that the U.S. government is in talks to take a 10% stake in Intel (INTC).

U.S. television station owner Sinclair (NASDAQ:SBGI) has reportedly offered to combine its broadcast TV business with rival operator Tegna (NYSE:TGNA).

A person familiar with the talks told Reuters that Tegna (NYSE:TGNA) is currently in advanced talks on a potential sale to Nexstar Media Group (NXST).

The report said any potential merger would be difficult to close because of Sinclair (NASDAQ:SBGI) and Tegna’s (TGNA) combined debt load.

The Wall Street Journal, which first reported the news, said that the deal would value Tegna’s shares at around $25 to $30 per share.

Sinclair earlier this month said its board had authorized a strategic review of the company’s broadcast business, and it is considering a separation of its Ventures portfolio.

Sinclair (SBGI), owns, operates, and/or provides services to 178 television stations in 81 markets affiliated with all major broadcast networks.

Tegna (TGNA), meanwhile, is no stranger to takeovers. Standard General and private equity firm Apollo Global (APO) had a deal in 2022 to purchase Tegna for $24 a share, though regulatory delays by the Federal Communications Commission ultimately scuttled the deal in 2023.

Do you like Crocs? Do you have a favorite NFL team?

Well, let’s combine the two.

Crocs (NASDAQ:CROX) has signed a multi-year licensing deal with the National Football League (NFL) for a collection of clogs bearing the logo of 14 NFL teams.

According to Adweek, the deal with the NFL adds to Crocs (NASDAQ:CROX) stable of sports partnerships that include the NBA, WNBA, NHL, Major League Baseball and several college sports teams like the University of Florida Gators and Ohio State Buckeyes.

The NFL news comes amid ongoing tariff pressures as much of Croc’s (NASDAQ:CROX) merchandise is manufactured in China, Vietnam, Indonesia, Mexico, and Bosnia.

Accordingly, the company expects to absorb most of the $90M in tariff costs this year while employing mitigation measures such as cost cutting, supply chain diversification, and efficient inventory management. This ultimately led the company to forecast a 9% to 11% reduction in revenue for Q3.

The news didn’t move the needle for Crocs (CROX) whose shares are down 23% this year with the majority of the decline occurring in the last 30 days.

If you’re a Lions, Eagles, 49ers, Steelers or KC fan, there’s a pic of the design in this article. I’ll leave a link in the show notes section. Sadly, my New Orleans Saints is not on the list. But the deal is expected to eventually include all 32 teams.

What’s Trending on Seeking Alpha:

Zelenskyy courts Trump with $90B defense package for U.S. protection

Nvidia said to develop new AI chip for China that beats the H20

Arm Holdings said to poach Amazon AI chip exec

Catalyst watch:

• Companies due to participate at the closely watched EnerCom Denver Energy Investment Conference include EOG Resources (EOG), Sandridge Energy (SD), and Oklo (OKLO).

• The Rosenblatt Age of AI Technology Summit will take place. The gathering is recognized as a key event for tracking developments in the AI semiconductor, networking, and infrastructure ecosystem. Some of the companies participating include Nvidia (NVDA), Applied Optoelectronics (AAOI), Fabrinet (FN), and Rambus (RMBS).

Dow, S&P and Nasdaq futures are unmoved, as investors look forward to the start of retail earnings and wait for more updates on the Ukraine-Russia conflict, not to mention Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium later this week.

Crude oil is down 1.2% at $62/barrel. Bitcoin is down 0.8% at $115,000. Gold is up 0.1% at $3,337.

The FTSE 100 is up 0.2% and the DAX is up 0.4%.

The biggest movers for the day premarket: AEye (NASDAQ:LIDR) +14% – Shares jumped after the company announced a strategic cooperation agreement with Black Sesame Technologies, a provider of automotive-grade computing platforms and smart vehicle solutions.

On today’s economic calendar:

• 10:00 am E-Commerce Retail Sales

• 2:10 pm Federal Reserve Vice Chair for Supervision Michelle Bowman will speak on “Fostering New Technology in the Banking System” before the Wyoming Blockchain Symposium 2025.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.