As the first significant step under new CEO Lip-Bu Tan to turn around the faltering American chipmaker, Intel has agreed to sell a 51 percent stake in its Altera programmable chip business to buyout company Silver Lake for $4.46 billion.
Altera is worth $8.75 billion in the sale, which was announced on Monday. This is a significant decrease from the $17 billion Intel paid in 2015.
The sale will help Intel’s finances as the chipmaker makes a significant investment in a capital-intensive project to become a contract manufacturer and aggressively reduces expenses to strengthen its balance sheet. In premarket trade, Intel’s stock was up 3.9%.
Source (CNBC)
