Bloomberg Businessweek Elliott Takes $2.5 Billion Aim at Texas Instruments’ Cash Flow
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May 28, 2024 
Bloomberg News talks about Elliott Investment Management's $2.5 billion investment in Texas Instruments. Maria Korsnick debunks nuclear power myths. Fola Akinnibi shares New York's produce market story.
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Elliott Questions TI's Market Bet
- Elliott's stake in Texas Instruments challenges TI's market view, not just management competence.
- TI is prioritizing long-term manufacturing reshoring that squeezes near-term free cash flow per share.
TI's Reshoring Plan Trades Short-Term Cash For Future Gain
- Texas Instruments is explicitly betting on bringing manufacturing in-house and reshoring production.
- Management says short-term free cash flow will fall now but free cash flow per share remains the long-term focus.
Shareholder Payouts Are Central To TI's Identity
- TI has prioritized shareholder returns historically via dividends and buybacks.
- The near-term cash drain for capex threatens that payout-focused investor base and invites activist pressure.