Intel flogs off majority stake in Altera to private equity for $4B
Intel is parting with a significant chunk of its business. The chipmaker has announced it is selling a 51% stake in Altera, a Field Programmable Gate Array (FPGA) designer, to private equity firm Silver Lake for $4.46 billion, with the total valuation pegged at $8.75 billion. This move comes after Intel’s previous $16.7 billion acquisition of Altera in 2015, which now seems like a questionable investment as the company adapts to ongoing financial challenges.
Key Points
- Intel is selling a 51% stake in Altera to Silver Lake for $4.46 billion.
- The deal values Altera at $8.75 billion, significantly lower than its purchase price of $16.7 billion in 2015.
- FPGA technology is widely used in various industries, from telecommunications to gaming and chip design.
- The move aligns with Intel’s strategy to address financial losses reported in the previous year.
- Former Marvell executive Raghib Hussain will take over leadership at Altera following the deal.
Why should I read this?
This news hits the tech industry hard. Intel’s divestment from Altera signals major shifts in the market and Intel’s strategy amidst its financial woes. If you’re interested in the future of semiconductor technology or investment trends, this article sheds light on the implications of such a significant transaction in the tech world.
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