Intel is selling a 51% stake in Altera, a FPGA company it acquired for $16.7 billion in 2015, to Silver Lake for $4.46 billion. This transaction signifies Intel's pivot from stringent control in the FPGA market, positioning Altera as the largest pure-play FPGA vendor globally. The move comes amidst substantial financial losses faced by Intel, reporting $18.8 billion net losses in 2024. Altera itself had a modest operating loss of $615 million. Intel's recent strategic decisions indicate a broader shift to manage profit margins and operational focus in a competitive landscape.
Intel's divestment of a 51% stake in Altera to Silver Lake reflects its strategy to streamline operations amidst significant financial losses, valuing Altera at $8.75 billion.
Despite the $4.46 billion gain from the sale, this is a stark contrast to the $16.7 billion Intel originally invested in Altera, highlighting notable miscalculations.
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