Texas Instruments gets $2.5B investment from Elliott

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Texas Instruments News

Elliott Investment Management,Financial Backing,Seana Smith

Texas Instruments (TXN) has received a $2.5 billion investment from Elliott Investment Management. However, Elliott's investment extends beyond just...

) has received a $2.5 billion investment from Elliott Investment Management. However, Elliott's investment extends beyond just financial backing. The hedge fund has also employed a"dynamic capacity management strategy" to propel the semiconductor company toward achieving positive free cash flow by 2026.As part of this, Elliott is proposing what it calls a quote dynamic capacity management strategy that would allow the company to achieve free cash flow as much as $9 a share by 2026.

So what has played out over the last two years since 2022 is free cash flow per share has actually declined by more than 75%. Many of the companies, many of the many of the executives, do sit up a bit and listen to what they have to say.But again, they're advocating to a return of what had been the priority here of Texas Instruments, or what had been proven performance of Texas Instruments for over a decade.Yeah, it's a great point sha, particularly when you look at the stock still up, paring back some gains.

 

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