Intel Divests Majority Stake in Altera for $4.46 Billion Amid Strategic Shift

Intel is selling a 51% stake in Altera for $4.46 billion, marking a significant move under new CEO Lip-Bu Tan to streamline operations and focus on core business areas.

In a bold move to streamline its operations, Intel has decided to sell a 51% stake in Altera, a chip-maker it acquired in 2015 for $16.7 billion, for $4.46 billion. This decision, expected to close in the latter half of the year, is part of new CEO Lip-Bu Tan’s strategy to sharpen Intel’s focus and strengthen its financial standing. Altera, known for its field programmable gate array chips, plays a crucial role in various sectors, including retro gaming hardware and telecommunications.

This sale marks a significant step for Intel under Tan’s leadership, aiming to navigate the company through a period of transformation. Despite the reduced valuation from its initial purchase, the deal provides Intel with much-needed cash flow at a pivotal time. Tan’s appointment in March signaled a new direction for Intel, with this sale being one of the first major actions to realign the company’s priorities.