Intel Pursues Minority Investors for Altera Unit, Valued at $17 Billion, Amid Restructuring Efforts

Nov 05, 2024

A CNBC story claims Intel Corp. will be looking to raise billions of dollars from minority investors for its programmable chip unit, Altera. From a valuation perspective, Intel (INTC:Financials) shelled out $16.7 billion to scoop up Altera in 2015 and currently values the segment at $17 billion.

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Furthermore, tech giant Intel has contacted strategic investors and private equity companies regarding potential Altera investments that could potentially generate processors used in data centers and high-performance communications. Although minority partnerships have taken center stage, Intel has also discussed that, based on sources familiar with the subject, a majority ownership in the unit is still on the table at this time.

Intel's shares ticked up 0.7% in late morning trade Friday but have tanked 50% YTD as worries about the company's efforts at turnaround continue. Moreover, Intel CEO Pat Gelsinger has been looking to streamline the company's structure. In October last year, Intel said it would split Altera into a stand-alone entity effective January 1, 2024.

This article first appeared on GuruFocus.