Intel to Sell Stake In Altera For $17 Billion

Intel is seeking to sell at least a minority stake in its Altera unit, worth approximately $17 billion, according to a report from CNBC citing people familiar with the matter, Angela Palumbo reported for Barron’s.

In February 2024, Intel revealed plans to spin off Altera as a standalone company. I Photo: Intel

In June 2015, Intel announced its acquisition of Altera, a company that produces programmable chips, for $16.7 billion.

In February 2024, Intel revealed plans to spin off Altera as a standalone company.

During Intel’s second-quarter earnings call in August, Chief Executive Patrick Gelsinger stated that “as Altera reaches full operational separation by year-end, we are actively working toward capitalizing the business to generate proceeds for Intel on a path to an IPO in the coming years.”

The CNBC report should not come as a surprise to investors.

Gelsinger sent a letter to employees in September outlining steps to transform the company, including a deal with Amazon to produce custom chips and plans to manage cash flow by selling part of Intel’s stake in Altera.

This has “long been part of our strategy to generate proceeds for Intel on Altera’s path to an IPO.” The transformation is deemed necessary as Intel's shares have dropped 55% this year, facing intense competition and high costs.