Silver Lake in Talks to Acquire Majority Stake in Intel's Programmable Chips Unit
Exclusive discussions are underway between Silver Lake Management and Intel Corp. for the acquisition of a controlling interest in Intel's programmable chips division, Altera.
Key Highlights:
* Altera's multi-use chips are widely utilized in telecommunications networks.
* Discussions are advanced, but the specific stake size remains undetermined.
* Talks could potentially face delays or setbacks.
* Intel's shares experienced a significant 17% intraday increase, signaling market optimism.
* Intel acquired Altera in 2015 for approximately $17 billion.
* As part of a business restructuring strategy, Intel intends to divest a portion of Altera.
Intel has faced recent challenges in the chip industry, including market share erosion and lagging advancements in artificial intelligence accelerators. Consequently, the company has undergone significant leadership changes and is actively searching for a new CEO.