Intel Sells Altera Stake to Silver Lake for $4.46B

Intel has agreed to sell a 51% stake in its Altera programmable chip unit to Silver Lake for $4.46 billion, valuing the business at $8.75 billion, a markdown from the $16.7 billion Intel initially paid in 2015. This divestiture aims to streamline Intel's operations and focus on its core businesses amid competitive pressures and financial losses, allowing Altera to operate independently and focus on high-demand sectors like AI and edge computing. New CEO Lip-Bu Tan emphasizes this move as part of a broader strategy to strengthen Intel's balance sheet and sharpen its focus on chip design and production. Altera will be led by Raghib Hussain starting May 5, 2025, who brings extensive experience in the semiconductor industry. The transaction is expected to close in the second half of 2025, after which Intel will deconsolidate Altera's financials. This strategic shift is anticipated to boost operational efficiency and foster growth in the FPGA market, positioning Altera as a major player despite past financial challenges.