\n<\/p>\n
Semiconductor giant Intel won\u2019t spin out its venture arm, Intel Capital, after all.<\/p>\n
During Intel\u2019s Q1 earnings call Thursday, Intel CEO Lip-Bu Tan said the company has reversed its decision to spin out its 34-year-old venture arm. Instead, Intel Capital will remain internal and continue to invest with Intel\u2019s interests in mind.<\/p>\n
\u201cWe have made the decision not to spin off Intel Capital, but to work with the team to monetize our existing portfolio, while being more selective on new investments that support the strategy we need to get our balance sheet healthy and start the process of deleveraging this year,\u201d Tan said on the call.<\/p>\n
It\u2019s a stark reversal in Intel\u2019s plans for Intel Capital. <\/p>\n
Intel announced in January that Intel Capital was going to strike out on its own<\/a>. Shortly after the announcement, Intel Capital VP and senior managing director, Mark Rostick, told TechCrunch that the firm had considered spinning out multiple times<\/a> over the years.<\/p>\n \u201cWe thought our track record merited attention from outside investors,\u201d Rostick told TechCrunch. \u201cWe had done really well, even while, you know, a lot of the venture industry hasn\u2019t been able to realize exits, we\u2019d had some success doing that, so we felt like we could position ourselves as a bit of an outlier there.\u201d<\/p>\n Talks about spinning out got more serious in 2024 \u2014\u00a0and had support from Intel\u2019s former CEO Pat Gelsinger<\/a>. The original plan was for Intel Capital to become independent by the third quarter of this year; Intel would remain an investment partner.<\/p>\n Now, it seems, that won\u2019t come to pass<\/p>\n