Intel CEO Pat Gelsinger testifies during the Senate Commerce, Science, and Transportation Hearing on Semiconductors, “Developing the Next Generation of Innovative Technologies,” in the Russell Senate Office Building on Wednesday, March 23, 2022.
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Intel The company is seeking to sell at least a minority stake in its Altera unit in a deal that would raise billions of dollars in cash for the troubled chip maker, according to people familiar with the matter.
Intel is seeking a deal that would value Altera at about $17 billion, said the person, who requested anonymity to speak freely about confidential information. In 2015, Intel acquired Altera for $16.7 billion.
Intel has been looking to make big changes after a sharp drop in its stock price and a long period of losing market share. Sources said the company this week made an acquisition proposal for Altera to a number of private equity and strategic investors. Intel has indicated to some of these investors that it may acquire a majority stake in the business.
An Intel representative declined to comment. The sale process is a sudden change from Intel’s previous comments about Altera. Just last month, Chief Executive Pat Gelsinger said Intel leadership sees the business as a core part of Intel’s future.
Intel has previously said it may seek to monetize its Altera business through an initial public offering (IPO), possibly as early as 2026.
Gelsinger and his leadership team have previously said Intel understands its disadvantage and is actively working to remedy it. Selling its Altera stake could make it easier for Intel to pursue its semiconductor manufacturing ambitions and reassure investors about its future as an independent company.
But the sales process also comes with Qualcomm has expressed interest in acquiring its one-time rival, a deal that would face intense regulatory scrutiny and have the potential to reshape the semiconductor industry.
Intel shares have fallen 50% this year as the company suffers NVIDIA In the field of artificial intelligence chips, its market share has been lost to AMD Its core PC and data center markets.
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