Intel is selling a controlling stake (51%) in its Altera programmable chip unit to investment firm Silver Lake for $4.46 billion, valuing the business at $8.75 billion, half the $17 billion paid in 2015. This was reported by Reuters.
New strategy
“The sale of assets has become a key part of Intel’s new CEO Lip-Bu Tan’s strategy to optimize the business,” the source said.
The previous head, Pat Helsinger, tried to catch up with NVIDIA in artificial intelligence, but Intel lost ground in the processor market. The deal with Altera will allow the company to focus on key areas and strengthen its balance sheet, and it will receive about $3.4 billion in cash.
Financial indicators
“In 2024, revenue from Altera amounted to $1.54 billion, which is only 3% of Intel’s total revenue, and an operating loss of $615 million,” the report says.
For comparison, Intel recorded a net loss of $18.8 billion on revenue of $53.1 billion in 2024. The sale of the controlling stake will relieve the financial burden and remove Altera’s results from Intel’s consolidated statements after the deal closes in the second half of 2025.