Private equity giant Silver Lake is in exclusive discussions to acquire a majority stake in Intel’s (NASDAQ: INTC) programmable chip unit, Altera, Bloomberg reports.
The deal is expected to value Altera at around $9 billion. However, the final stake size remains under negotiation, and discussions may encounter delays.
Intel, which bought Altera for nearly $17 billion in 2015, is looking to raise cash as it restructures operations and seeks cost-cutting measures. The company has been exploring options, including selling off parts of its business.
In an October earnings call, former Intel CEO Pat Gelsinger told analysts the company aimed to sell a stake in Altera ahead of a potential IPO in the coming years. Intel began discussions with investors late last year and expects to conclude a deal by early 2025.
Silver Lake and Bain Capital were among the private equity firms initially eyeing a minority stake in Altera, as Reuters reported in November. Francisco Partners also showed interest in the deal.
Meanwhile, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Broadcom (NASDAQ: AVGO) are reportedly considering potential deals that could lead to a breakup of Intel, according to a Wall Street Journal report on Saturday.
Intel (NASDAQ: INTC) recently reported stronger-than-expected earnings for its December quarter. However, its current-quarter revenue forecast fell short of estimates due to weak demand for data center chips and investor uncertainty over leadership changes.
