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Intel ousts CEO and names successor

January 13, 2021. Summarized by summa-bot.

Compression ratio: 75.3%. 1 min read.

MUMBAI, MAHARASHTRA MAY 21: CEO of VMware, Patrick P. Gelsinger clicked during a photo shoot in Mumbai. (Photo by Milind Shelte/The India Today Group via Getty Images)

Intel has named Pat Gelsinger as its new chief executive officer, replacing Bob Swan after a rocky two-year run.

New York (CNN Business)Intel has named Pat Gelsinger as its new chief executive officer, replacing Bob Swan after a rocky two-year run.

Gelsinger, who has been VMWare's CEO for about the past decade, will take the helm at Intel on February 15.

Intel (INTC) shares rose about 9% in early trading, while VMWare (VMW) shares slipped nearly 4%.

Swan was named Intel's permanent CEO in January 2019 following the departure of its previous CEO Brian Krzanich, who was forced to resign in June 2018 because of a "past consensual relationship with an Intel employee. "

The changes at Intel come after a letter from well known activist investor Dan Loeb of Third Point.

In December, he wrote to Intel Chairman Omar Ishrak calling on the company to hire an investment adviser to explore "strategic alternatives" aimed at regaining market share from competitors, particularly Taiwan Semiconductor Manufacturing Company (TSM) and Samsung (SSNLF).

The suggestions in the letter — which include calls for the company to more seriously consider whether to continue making all of its chips in-house and divesting from "failed acquisitions" — could lead to major changes if Intel acts upon them.

In Wednesday's release, Intel said its board "concluded that now is the right time to make this leadership change to draw on Pat's technology and engineering expertise during this critical period of transformation at Intel," adding that the change will "ensure strong execution" of Intel's new future.

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