Catenaa, Monday, April 14, 2025– Intel has agreed to sell a 51% stake of Altera programmable chip to Silver Lake for $4.46 billion, to cover losses by selling non-central businesses and assets.
The deal, announced on Monday, values Altera at $8.75 billion, a sharp decline from the $17 billion Intel paid in 2015. Intel will continue to hold a 49% stake in the business. The deal is expected to close in the second half of 2025.
Altera will be run by Raghib Hussain, who replaces Sandra Rivera as chief executive officer.
Since last year, Intel has taken steps to spin Altera out as a separate unit and said it planned to sell a portion of its stake.
“Today”s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” Intel CEO Lip-Bu Tan said.
Earlier this month, Tan said Intel will sell off assets that aren’t central to its mission and create new products including custom semiconductors to try to better align itself with customers.
Intel has lost market share to rivals in recent years and missed the shift to artificial intelligence accelerators, a market now dominated by Nvidia.
Altera makes programmable chips that can be used for various purposes from telecom equipment to military.
In 2024, Altera generated revenue of $1.54 billion and posted an operating loss of $615 million.
Following the news of the stake of Altera, Intel shares gained by over 6% in the first hour trading on Monday.
