Intel Sells $4.46 Billion Majority Stake in Altera: A Strategic Move to Fuel Its Revival Efforts

Intel is making a bold move by selling 51% of its Altera programmable chip business to the buyout firm Silver Lake for $4.46 billion. This deal marks a significant step taken by the new CEO, Lip-Bu Tan, as he works to breathe new life into the struggling tech giant.

The sale values Altera at $8.75 billion. This is a steep decline from the $17 billion Intel originally paid for the company back in 2015. The cash from this sale will help Intel as it trims expenses and invests in crucial manufacturing operations.

After the announcement, Intel’s shares jumped by 3.9% in premarket trading, signaling investor optimism about the company’s direction under new leadership. Tan stated that this decision shows Intel’s commitment to focusing on its core business, reducing costs, and strengthening its finances.

Altera specializes in programmable chips, which play a vital role in various industries, including telecommunications and defense. Intel has been planning to restructure Altera for some time and has indicated its desire to sell part of its ownership stake.

The deal is set to close in the latter half of 2025. Afterward, Intel plans to separate Altera’s financial results from its own, which could streamline operations and improve reporting. In 2024, Altera reported revenues of $1.54 billion but also faced a setback with a $615 million operating loss.

Raghib Hussain, an experienced executive from Marvell Technology, will take over as the new CEO of Altera in May. This leadership change signals a fresh start for the company as it prepares for its future under Silver Lake’s guidance.

This move by Intel highlights the ongoing shifts in the tech industry, where companies are focusing on core competencies and restructuring to stay competitive. As demand for chips continues to rise, especially in AI and other emerging technologies, companies like Intel must adapt quickly to maintain a strong position.

For more insights into the chip market, you can explore the recent Market Research Report.

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