WendyOneP
04-15

$Intel(INTC)$

Selling a majority stake in Altera at a valuation significantly lower than its 2015 acquisition price of $16.7 billion raises concerns about Intel's long-term strategy. While the immediate influx of $4.46 billion may alleviate short-term financial pressures, it also means relinquishing control over a business that could be pivotal in the growing FPGA market, especially with the rise of AI and edge computing. The move might be seen as Intel stepping back from diversification efforts, potentially narrowing its future revenue streams. Furthermore, the success of this partnership heavily relies on Silver Lake's management of Altera, introducing uncertainties that could impact Intel's residual stake. This decision might provide temporary relief but could pose challenges in the long run. ​

Intel Sells 51% of Altera: A Smart Move for Future Growth?
Intel has announced an agreement with private equity firm Silver Lake to sell a stake in its FPGA subsidiary, Altera. Silver Lake will acquire 51% of Altera at a valuation of $8.75 billion, while Intel will retain the remaining 49% stake. Intel rises 3% on the news. ------------- Will there be more spinoff or sale of Intel business? How do you view the discount sale of Altera? Are you bullish on Intel transformation or not?
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Comments

  • Enid Bertha
    04-21
    Enid Bertha
    Intel's book value around $23 per share.
  • Venus Reade
    04-21
    Venus Reade
    Intel trading at less than two times revenue. CEO Lip-Bu Tan leaning into foundry and AI products.
  • dong123
    04-16
    dong123
    Hmm, interesting move
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