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Ericsson (NASDAQ:ERIC) is in discussions with Intel (NASDAQ:INTC) to invest hundreds of millions of dollars in its networking infrastructure business.
An investment would make Ericsson (NASDAQ:ERIC) a minority investor in the planned spin-off of Intel’s networking and edge business, known as NEX, according to a Bloomberg report on Thursday, which cited people familiar with the matter. Intel has also had talks with other possible investors about taking a stake in the business.
No deal has been finalized, and it’s possible a deal doesn’t come to fruition with the Swedish telecom giant.
A potential investment in the NEX spin comes after Intel on Friday confirmed plans to spin off its networking and communications business as a standalone company.
Intel on Thursday said it’s planning to cut 15% of jobs and will end the year with a global headcount of ~75,000 as a part of sweeping restructuring under new CEO Lip-Bu Tan.