Intel (NASDAQ:INTC) is looking to sell at least a minority stake in its Altera unit in a transaction that would raise several billion dollars in cash for the struggling chipmaker, according to people familiar with the matter.
Intel is looking for a deal that values Altera at around $17 billion, said the people, who requested anonymity to speak freely about confidential information. Intel purchased Altera for $16.7 billion in 2015.
Following a steep drop in its stock price and extended stretch of market share losses, Intel has been looking to make drastic changes. The company made overtures to a number of private equity and strategic investors this week about Altera, the sources said. Intel has expressed to some of those investors that it would be possible to acquire a majority stake in the business.
A representative for Intel declined to comment. The sale process represents an abrupt change from Intel’s prior commentary on Altera. As recently last month, CEO Pat Gelsinger said that Intel’s leadership considered the business to be a core part of Intel’s future.
Intel has previously said it could look to monetize Altera business through an IPO, possibly as soon as 2026. But the idea of taking strategic or private equity investment would be a marked acceleration of those plans.
INTC shares tallied 28 cents, or 1.2%, to $22.72.
