From Yahoo Finance: 2025-04-14 08:37:00

Intel has agreed to sell a 51% stake in Altera to Silver Lake for $4.46 billion. This move by new CEO Lip-Bu Tan aims to revive the struggling chipmaker. The deal values Altera at $8.75 billion, providing much-needed cash for Intel after previous financial strains.

Intel’s shift in focus includes shedding assets like Altera to streamline operations. Previous missteps have left the company struggling in AI against Nvidia and AMD. CEO Tan is committed to strengthening the balance sheet and lowering expenses while sharpening the company’s focus.

The deal is expected to close in the second half of 2025, with Raghib Hussain taking over as Altera CEO. Altera, which posted $1.54 billion in revenue in 2024, is a small part of Intel’s sales. The divestiture of Altera comes at a challenging time, but some investors see it positively as Intel focuses on core businesses.

Intel’s acquisition of Altera did not go as planned, leading to market share erosion. The sale to Silver Lake is seen as a strategic move to refocus on core operations. More asset divestitures are expected, as Intel aims to strengthen its position in the chip industry.

Read more: Intel to sell majority stake in Altera for $4.46 billion to fund revival effort