Intel filed a report today detailing the terms of the sale of a 10% stake to the Trump administration detailing dilution for shareholders and risks to international sales. Here's some "highlights" from the Form 8-K filed with the SEC today: The transactions are dilutive to existing stockholders The issuance of shares of common stock to the US Government at a discount to the current market price is dilutive to existing stockholders, and stockholders may suffer significant additional dilution if the conditions to the Warrant are triggered and the Warrant are exercised. The US Government’s equity position in the Company reduces the voting and other governance rights of stockholders and may limit potential future transactions that may be beneficial to stockholders The transactions contemplated by the Purchase Agreement may result in the US Government becoming the Company’s largest stockholder. The US Government’s interests in the Company may not be the same as those of other stockholders. The Purchase Agreement requires the US Government to vote its shares of common stock as recommended by the Company’s board of directors, subject to applicable law and exceptions to protect the US Government’s interests. This will reduce the voting influence of other stockholders with respect to the selection of directors of the Company and proposals voted on by stockholders. The existence of a significant US Government equity interest in the Company, the voting of such shares either as directed by the Company’s board of directors or the US Government, and the US Government’s substantial additional powers with respect to the laws and regulations impacting the Company, may substantially limit the Company's ability to pursue potential future strategic transactions that may be beneficial to stockholders, including by potentially limiting the willingness of other third parties to engage in such potential strategic transactions with the Company. The Company’s non-US business may be adversely impacted by the US Government being a significant stockholder Sales outside the US accounted for 76% of the Company’s revenue for the fiscal year ended December 28, 2024. Having the US Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries. The Company may experience other adverse consequences resulting from the announcement or completion of the transactions Given the scarcity of recent US precedents for transactions such as those contemplated by the Purchase Agreement and of the US Government becoming a significant stockholder of a company like the Company, it is difficult to foresee all the potential consequences. Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors. There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company. Intel generates 76% of its revenues from overseas, and actually loses money on its American foundry business. The company lost $18 billion in 2024 in its U.S. foundry division, which was up from $7 billion in the previous year. This Trump deal is motivated by the administration's desire to increase state-side manufacturing. The deal is expected to be closed tomorrow at a discounted price below the current share price which will dilute shareholders who have already seen the company's stock plummet 63% from its 2020 high share price of $69.29. It's also interesting to note that while many semiconductor companies have surpassed their dotcom bubble highs, Intel (INTC) has never gotten back to its all time high share price of $75.81 set back in the fall of 2000. Countless other semiconductor companies have passed up Intel as the company missed the boat on huge secular trends like ARM-based processors powering the smartphone revolution and some AI and cloud solutions currently dominated by companies like NVIDIA, AMD, and even Google. White House economic advisor Kevin Haslett told CNBC in an interview earlier today that the administration is willing to make more deals like this with other companies, so keep it locked on Shacknews as we cover the latest market-moving news as it breaks.