Intel To Sell Majority Stake In Altera For $4.46 Billion To Fund Revival Effort

Intel will sell a 51% stake in its Altera programmable chip unit to private equity firm Silver Lake for $4.46 billion, aiming to cut costs, raise cash, and streamline the company's focus as it shifts toward becoming a contract chip manufacturer. CNBC reports: The deal, announced on Monday, values Altera at $8.75 billion, a sharp decline from the $17 billion Intel paid in 2015. Since last year, Intel has taken steps to spin Altera out as a separate unit and said it planned to sell a portion of its stake. 'Today's announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,' [CEO Lip-Bu Tan], who took the helm after former top boss Pat Gelsinger's ouster, said.

Altera makes programmable chips that can be used for various purposes from telecom equipment to military. Reuters had first reported in November that Silver Lake was among potential suitors competing for a minority stake in Altera. The deal is expected to close in the second half of 2025, after which Intel expects to deconsolidate Altera's financial results from Intel's financial statements, the company said.

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