All articles tagged with #equity stake
A proposed $500 million rescue for Spirit Airlines could leave the federal government with up to a 90% ownership stake after bankruptcy, prompting warnings from experts and lawmakers about market distortions and a risky precedent for government-backed equity in private companies, with potential ripple effects for other carriers as the White House monitors industry health.
Spirit Airlines is seeking U.S. government aid to stay afloat amid a cash crunch, reportedly offering the government an equity stake in exchange for a cash infusion to cover rising fuel costs as it contends with bankruptcy issues and a risk of liquidation.
The Commerce Department plans a $1.3 billion loan and $277 million in federal funding to USA Rare Earth, in exchange for 16.1 million shares and 17.6 million warrants that would give the government an 8%–16% stake once warrants are exercised. The deal, part of a push to build a Western rare earth supply chain, funds the company’s magnet plant in Stillwater, Oklahoma, and the Round Top mine in Texas, with total project costs around $4.1 billion and about $3.5 billion already secured from cash, private funding, and the government package. Disbursement is 2026–2028 based on milestones, and the agreement is subject to final approvals; the company has already raised $1.5 billion from private investors. Shares rose more than 20% on the news.
The Trump administration is not currently considering taking an equity stake in Critical Metals Corp., despite reports and market volatility caused by speculation. The administration has received numerous deal proposals but is not actively pursuing any, including with Critical Metals, which is involved in Greenland’s rare earths project. Recent government investments in other resource companies highlight ongoing efforts to support critical industries.
Lithium Americas' stock doubled after the Trump administration proposed taking an equity stake in the Canadian mining company as part of renegotiating a $2.2 billion loan for its Nevada lithium project, highlighting increased U.S. interest in securing critical mineral supply chains.
Lithium Americas' stock nearly doubled after the U.S. government proposed taking an equity stake in the company as part of renegotiating a $2.3 billion Energy Department loan, amid strategic investments in critical minerals for battery production.
Lithium Americas' shares surged over 70% after reports that the Trump administration is considering taking up to a 10% equity stake in the company as part of negotiations to renegotiate a $2.26 billion loan for its Thacker Pass lithium mine, highlighting increased U.S. interest in critical minerals and domestic supply chain security.
Webtoon (WBTN) stock surged 58% following news of a deal with Disney and an increase in its equity stake, signaling strong investor confidence in the company's strategic partnership and growth prospects.
Intel warned that the U.S. government's plan to take a roughly 10% equity stake in the company could pose regulatory and operational risks, especially affecting its international business and future transactions, amid ongoing debates over government involvement in private companies.
President Trump announced that Intel has agreed to give the US government a 10% equity stake in the company, marking a rare instance of government ownership in a major American corporation, aimed at revitalizing Intel and ensuring American dominance in the chip industry.
Intel's stock dropped over 3% following reports that the U.S. government may convert $10.9 billion in Chips Act grants into a 10% equity stake in the company, potentially increasing its share count and impacting earnings.
Nvidia, a dominant player in the data center chip market, is expanding its venture capital investments in cloud and AI software startups. The company is nearing a deal to acquire an equity stake in Lambda Labs, a cloud provider that rents servers with Nvidia chips to other companies. This move follows Nvidia's previous investment in CoreWeave, another Lambda competitor. The deal with Lambda Labs could bring in $300 million in new capital and value the company at over $1 billion.