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Comment by cyphertruck | Hacker News Reader

It actually wouldn't. The sale price will be pretty close to the current market price, maybe %10 more. If the Government kicks in funds to underwrite the deal (say a loan to TSMC) then the deal would likely happen exactly at market price.

That means investors who sell are getting the current low market price or a little bit higher--- they will still be down the massive amount.

This is really bailing out current management-- letting them be replaced by the more capable TSMC people and getting an attaboy for helping the US government strengthen the alliance with Taiwan, keeping peace in the region.

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> This is really bailing out current management-- letting them be replaced by the more capable TSMC people

The trouble with a competent organization buying a decadent organization is that leadership at the decadent organization is often much better at winning political infighting (they have a lot of practice).

So it’s very easy to end up in a situation where the disfunction metastases up into the parent.

At the very least, executive attention is finite and splitting attention like this is distracting to the parent executives, which harms the parent organization.

Yes, the Boeing buying McDonnell case :(

But the buyer can just unconditionally lay off all the top brass, exactly for that reason. The layoff can be more of a golden parachute kind, to prevent any sabotage.

Why don't we ever see management suddenly locked out without any ability to get into their accounts or buildings?

They failed the duty, no golden package or BS.

But TSMC isn't a design house. Intel has both fab and design. TSMC's management could only help out on the fab side.

> Intel has both fab and design.

The fab part is not a good deal since Intel struggles a lot with it and they are not even on par with what TSMC was producing a few years back using older processes.

I would guess in this deal, TSMC would produce the chips and fire all the Intel foundry people.

TSMC was founded on the principle of never doing design. The promise to never steal customers from their clients.

Who would TSMC buy the shares from?

Would they buy existing shares from investors? Would they really find enough investors willing to sell shares at market price? I doubt it. There would be a lot of investors that would rather hold than sell at market price. Market price is the current minimum price an investor is willing to accept. Not the price that all investors are willing to accept.

Would they buy new shares issued by Intel? That seems more likely to me. That would be a bailout to Intel.

>If the Government kicks in funds to underwrite the deal (say a loan to TSMC) then the deal would likely happen exactly at market price.

If you need taxpayers to make a deal happen, then it is not happening at market price, by definition.

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