Pat Gelsinger, CEO of Intel Corporation, speaks during a Senate Commerce meeting on semiconductors entitled “Developing Next-Generation Technologies for Innovation” on Wednesday, March 23, 2022, at the Russell Senate Office Building. Testified at science and transportation hearings.
Tom Williams | CQ-Roll Call Inc. | Getty Images
intel The company is considering selling at least a minority stake in its Altera unit in a deal that would raise billions of dollars in cash for the struggling chipmaker, people familiar with the matter said.
Intel is exploring a deal that would value Altera at about $17 billion, said the people, who requested anonymity to discuss confidential information. Intel acquired Altera in 2015 for $16.7 billion.
Intel is making fundamental changes after its stock price plummeted and its market share declined for a long time. The company approached a number of private equity and strategic investors about Altera this week, the people said. Intel has told some investors that it is open to acquiring a majority stake in the business.
A representative for Inter declined to comment. This sale process represents a sudden change from Intel’s previous comments regarding Altera. Similarly last month, CEO Pat Gelsinger said that Intel’s management sees this business as a core part of Intel’s future.
Intel has previously said it may consider monetizing its Altera business through an IPO, possibly as early as 2026. However, the idea of ​​making strategic and private equity investments could significantly accelerate these plans.
Gelsinger and his management team have previously said Intel understands its disadvantage and is working aggressively to correct it. Selling Altera stock could allow Intel to pursue its semiconductor manufacturing ambitions more easily and reassure investors that it has a future as an independent company.
But the sales process also includes Qualcomm has expressed interest in acquiring its former rival, a deal that would come under intense regulatory scrutiny and could reshape the semiconductor industry.
Intel’s stock price has fallen 50% this year. Nvidia We are losing market share in artificial intelligence chips advanced micro device in the company’s core PC and data center markets.
Note: Biggest obstacle to Intel acquisition is regulators
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