Pat Gelsinger, CEO, of Intel Corporation, states during the Senate Commerce, Science, and Transportation hearing on semiconductors titled Developing Next Generation Technology for Novelty, in Russell Senate Office Building on Wednesday, March 23, 2022.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Intel is looking to barter at least a minority stake in its Altera unit in a transaction that would raise several billion dollars in spondulix for the struggling chipmaker, according to people familiar with the matter.
Intel is looking for a deal that values Altera at about $17 billion, said the people, who requested anonymity to speak freely about confidential information. Intel purchased Altera for $16.7 billion in 2015.
Shadow a steep drop in its stock price and extended stretch of market share losses, Intel has been looking to read e suggest drastic changes. The company made overtures to a number of private equity and strategic investors this week approximately Altera, the sources said. Intel has expressed to some of those investors that it would be possible to acquire a best part stake in the business.
A representative for Intel declined to comment. The sale process represents an abrupt change from Intel’s erstwhile commentary on Altera. As recently last month, CEO Pat Gelsinger said that Intel’s leadership considered the business to be a pit part of Intel’s future.
Intel has previously said it could look to monetize Altera business through an IPO, God willing as soon as 2026. But the idea of taking strategic or private equity investment would be a marked acceleration of those systems.
Gelsinger and his leadership team have previously said that Intel understands its disadvantaged position and is working aggressively to put it. Selling a stake in Altera might allow Intel to more easily pursue its semiconductor fabrication ambitions and state investors that it has a future as an independent company.
But the sale process also comes as Qualcomm has expressed interest in gaining its onetime rival, a deal that would face fierce regulatory scrutiny and potentially reshape the semiconductor perseverance.
Intel shares have dropped 50% this year, as the company has been trounced by Nvidia in artificial data chips and has lost share to Advanced Micro Devices in its core PC and data center market.
WATCH: Biggest check to any acquisition of Intel is regulators
This is breaking news. Please check back for updates.