Intel appears to be planning to divest a minority stake in Altera. The deal would bring a welcome cash injection into the till.
Intel is in the midst of reform, and there seem to be no sacred cows in the process. Among other things, the chip maker is considering completely spinning off its factory division, and Altera has also been put on display, a company Intel acquired as recently as 2015 for $16.7 billion. CNBC writes that Intel is in negotiations to sell a minority stake in Altera.
Sandra Rivera, CEO of Altera, swept aside rumors of an outright sale by Intel just last month. Intel, however, makes no secret of the fact that it is seeking investors for Altera. An IPO is scheduled for 2026, but now Intel seems to want to cash in sooner anyway. The deal on the table should raise Altera’s market value to $17 billion.
After all, Intel could use the pennies itself. The chip giant of yesteryear is going through a tumultuous period. CEO Pat Gelsinger announced in September a restructuring plan in which nothing or no one within the company would be spared. The sale of at least a minority stake would bring a welcome cash injection into the coffers to boost those reforms.
read also
Will Intel be all right?
Takeover
Intel is in the middle of a takeover process. Competitor Qualcomm sees in Intel’s problems a godsend to take over the company. Intel’s corporate management does not appear to be eager for a takeover for now, but a no-holds-barred offer could always sway them.
Qualcomm is reportedly awaiting the outcome of the U.S. presidential election before proceeding with the acquisition.