[News] Intel Reportedly Aims to Raise Billions through Sale of Minority Stake in Altera

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Rumors have been circulating for a while that Intel is considering to sell off its FPGA unit Altera, and later subsided as Altera reiterated that it still eyes an IPO in 2026. However, Intel’s stance of regarding Altera to be a critical part of its core business seems to waver, according to the latest report by CNBC.

Citing sources familiar with the situation, CNBC notes that Intel is seeking to sell at least a minority stake in Altera, a move that could generate several billion dollars in cash for the struggling semiconductor giant.

This week, the company was said to be reaching out to various private equity and strategic investors regarding Altera, according to the sources cited by the report. It is worth noting that Intel has indicated that acquiring a majority stake in the business is also a possibility.

A month ago, CEO Pat Gelsinger mentioned in a press release that Intel is working to carefully manage its cash as the company meaningfully improves its balance sheet and liquidity.

The efforts, in his own words, include selling part of Intel’s stake in Altera, something has been talked about publicly several times and has long been part of its strategy to generate proceeds for Intel on Altera’s path to an IPO.

According to CNBC, Intel aims to strike a deal that values Altera at around USD 17 billion, an amount approximately equivalent to the USD 16.7 billion Intel paid to acquire Altera in 2015.

An Intel representative declined to comment on the matter, according to CNBC.

Qualcomm, another tech giant who has expressed its interest in acquiring Intel, is said to be investigating the possibility of acquiring parts of Intel’s design business to enhance its product portfolio, but the decision might not be made after the U.S. presidential election, according to Bloomberg. Whether the development of the Altera sale would cause an impact to the potential deal remains to be seen.

Read more

• [News] AMD Could Emerge as a Prospective Buyer for Intel’s Potential Sale of Altera
• [News] Altera CEO Denies Rumors for Sale, Claiming IPO Plan by 2026 Remains Unchanged

(Photo credit: Intel)