Intel seeks billions for minority stake in Altera business, sources say

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This move that would represent a sharp about face from its earlier public messaging about the larger company's prospects.

Intel is looking for an investor that would acquire at least a minority stake worth billions for its Altera subsidiary, an abrupt about face from its prior messaging.It is possible that Intel would look to find a majority acquirer for the business.

Intel has previously said that it could look to monetize its Altera business via an initial public offering, possibly as soon as 2026. But the idea of taking strategic or private equity investment would be a marked acceleration of those plans. CEO Pat Gelsinger and his leadership team have previously said that Intel understands its disadvantaged position and is working aggressively to remedy it. To be sure, the sale of a minority stake in Altera would allow Intel to more easily pursue its semiconductor fabrication ambitions and assuage investors that it has a strong path forward as an independent company.

But the sale process also comes as Qualcomm has expressed interest in acquiring its onetime rival, a deal which would face fierce regulatory scrutiny and reshape semiconductor industry. Intel has to grapple with a significant debt load, and has seen its stock plunge more than 50% year-to-date.

 

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