After all, the semiconductor giant Intel won’t spin out its venture arm, Intel Capital.
During Intel’s first quarter revenue calls, Intel CEO Lip-Bu Tan said the company reversed its decision to spin out its 34-year-old venture arm. Instead, Intel Capital will remain internal and will continue to invest with Intel’s profits in mind.
“We have decided to work with our team to monetize our existing portfolio rather than spinoff Intel Capital, but we are making new investments more selective to keep our balance sheet healthy and support the strategies needed to begin this year’s deciphering process,” Tan said in the phone.
This is a tough change in Intel’s Intel Capital plans.
In January, Intel announced that Intel Capital would be taking a solo strike. Shortly after the announcement, Intel Capital VP and Senior Managing Director Mark Rostick told TechCrunch that the company had been considering spinning multiple times over the years.
“We thought our track record was worthy of attention from outside investors,” Rostic told TechCrunch. “We were doing really well, but a lot of the venture industry couldn’t make the exits happen, so we did it and felt like we could position ourselves as a bit of an outlier there.”
Last year, talk about the spin-out got even more serious, reportedly with support from former Intel CEO Pat Gelsinger. The original plan was for Intel Capital to become independent by the third quarter of this year. Intel remains an investment partner.
Now it doesn’t seem to pass.