Apollo: Sold for $11.0 Billion, Bought Back for $14.2Thin moat

Intel (INTC) — moat facet

Intel sold half of its Irish factory to Apollo for $11.0 billion in 2024 and paid $14.2 billion to buy it back in 2026.

In 2024 Intel sold 49% of its Ireland manufacturing joint venture, which runs Fab 34, to Apollo for net proceeds of $11.0 billion1. It was the model for how Intel would fund its factories: other people's money for half the plant, and a share of the output in return.

Ireland joint venture stake ($bn)11.0Sold to Apollo, 202414.2Bought back, April 2026Intel Form 10-K FY2025; Q2 2026 10-Q
$3.2 billion more to undo it.

Two years later it bought the stake back. On 8 April 2026 Intel reacquired Apollo's 49% minority interest for aggregate cash consideration of $14.2 billion2, about $3.2 billion more than it received3. It financed the purchase in part with a $6.5 billion 364-day term loan, repaid in full on 30 April 20264.

The reversal says two things. The factory had become more valuable to Intel, which could now fill it, than the partnership arrangement allowed. And capital partnerships of this kind are expensive: the partner is paid a return whether the plant is full or not, and buying it out costs more than the original sale.

The same structure remains in Arizona, where Brookfield owns 49%5. Non-controlling interests there rose to $13,428 million at 27 June 2026 from $9,106 million at the end of 20256, as Brookfield contributed more capital.

The partnership came with protections for Apollo. Intel's 10-K disclosed that damages payable to Apollo for delays at Fab 34 were capped at $1.1 billion7; the buyback extinguished that exposure8. Partnerships of this kind protect the partner against exactly the risks that make leading-edge manufacturing hard, which is why they cost more than they appear to.

Other people's capital helped Intel through its worst years. The measure of its cost is the return those partners earn: Intel guided non-controlling interests to about $1.1 billion a year in 2027 and 20289, money that leaves the business every year the partnerships last.

Moat trajectory: Holding steady

Ireland is back in full ownership; Brookfield still owns 49% of Arizona.

The number that tests this moat
Reported
Net income attributable to non-controlling interests, 2027 guidance
About $1.1bn a year (2027 and 2028)

What partners take out of Intel's plants; rising beyond guidance would mean more of the factories' earnings leave the company.

Source: Intel Q2 2026 prepared remarks ↗
⚠ Threats to the moat
⚠ THREAT 01
Brookfield Still Owns Half of Arizona
A financial partner owns 49% of Intel's newest American factories and will take half of what they earn.
References
  1. ReportedIn 2024 Intel sold 49% of its Ireland manufacturing joint venture, which runs Fab 34, to Apollo for net proceeds of $11.0 billion.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  2. ReportedOn 8 April 2026 Intel reacquired Apollo's 49% minority interest for aggregate cash consideration of $14.2 billion, about $3.2 billion more than it received.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  3. Moat Explorer calcOn 8 April 2026 Intel reacquired Apollo's 49% minority interest for aggregate cash consideration of $14.2 billion, about $3.2 billion more than it received.
    Moat Explorer calculation from Intel's reported figures ($ millions unless stated). Segment margins 2025: Client Computing 9,317 / 32,228 = 28.9% (2024: 11,594 / 33,346 = 34.8%; Q2 2026: 2,343 / 8,877 = 26.4%); Data Center and AI 945 / 15,980 = 5.9% (2023), 1,414 / 16,125 = 8.8% (2024), 3,422 / 16,919 = 20.2% (2025), 2,474 / 6,262 = 39.5% (Q2 2026); Intel Products 12,739 / 49,147 = 25.9%. Revenue shares 2025: client 32,228 / 52,853 = 61.0%; data center 16,919 / 52,853 = 32.0%; together 49,147 / 52,853 = 93.0%. Client growth Q2 2026: 8,877 / 7,871 - 1 = 12.8%. Foundry: internal revenue 17,826 - 307 = 17,519, 17,519 / 17,826 = 98.3%; external share 307 / 17,826 = 1.7%; operating losses 7,083 + 13,291 + 10,318 = 30,692. Intel share of x86 server revenue Q1 2026: 100 - 46.2 = 53.8%. Revenue 2025 against 2021: 52,853 / 79,024 - 1 = -33.1%. Headcount 82.3 / 124.8 - 1 = -34%. Government stake 433.3M x $127.39 = about 55.2 bn; purchase funds 5.7 + 3.2 = 8.9 bn. Warrants 241M x (127.39 - 20.00) = about 25.9 bn. Nvidia stake 215M x 127.39 = about 27.4 bn; 215 / 4,994 = 4.3%. Backers 11.0 + 8.9 + 5.0 + 2.0 = 26.9 bn. Apollo 14.2 - 11.0 = 3.2 bn. Mobileye 100% - 23% = 77%. Net debt end-2025: (2,499 + 44,086) - (14,265 + 23,151) = 46,585 - 37,416 = 9,169; 27 June 2026: (1,988 + 48,549) - (12,874 + 16,853) = 50,537 - 29,727 = 20,810. Shares: diluted 4,530 / 4,090 - 1 = 10.8% (2021-2025); outstanding June 2026 5,043 against 4,090 diluted in 2021 = 23% more. China share of revenue 12,694 / 52,853 = 24.0% (2025); 15,532 / 53,101 = 29.2% (2024); China 12,694 / 22,961 - 1 = -44.7% (2021-2025). Gross margin 43,815 / 79,024 = 55.4% (2021); 21,711 / 54,228 = 40.0% (2023). R&D 16,546 - 13,774 = 2,772; R&D share of revenue 13,774 / 52,853 = 26.1% (2025), 16,546 / 53,101 = 31.2% (2024). Operating cash flow to gross capital spending 9,697 / 17,672 = 0.55. All Other external revenue: 54,228 - 32,305 - 15,980 - 547 = 5,396 (2023); 53,101 - 33,346 - 16,125 - 159 = 3,471 (2024); 52,853 - 32,228 - 16,919 - 307 = 3,399 (2025). Trailing EPS to June 2026: -0.06 - (-0.19 - 0.67) + (-0.73 - 2.16) = -2.09. Market value 669.37 / 86.48 = 7.7 times end-2024; share price 127.39 / 29.23 = 4.4 times the 52-week low - capital, ownership and valuation. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Intel's Forms 10-K, 10-Q, results releases, prepared remarks and market data; operands shown in the source line.
  4. ReportedIt financed the purchase in part with a $6.5 billion 364-day term loan, repaid in full on 30 April 2026.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  5. ReportedThe same structure remains in Arizona, where Brookfield owns 49%.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  6. ReportedNon-controlling interests there rose to $13,428 million at 27 June 2026 from $9,106 million at the end of 2025, as Brookfield contributed more capital.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedIntel's 10-K disclosed that damages payable to Apollo for delays at Fab 34 were capped at $1.1 billion; the buyback extinguished that exposure.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  8. ReportedIntel's 10-K disclosed that damages payable to Apollo for delays at Fab 34 were capped at $1.1 billion; the buyback extinguished that exposure.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  9. ReportedThe measure of its cost is the return those partners earn: Intel guided non-controlling interests to about $1.1 billion a year in 2027 and 2028, money that leaves the business every year the partnerships last.
    Intel Q2 2026 earnings call prepared remarks (CEO and CFO). — Q2 2026 · publ. 23 July 2026 · source ↗
Sources
Generated September 25, 2026