Intel wants billions for minority stake in Altera business, sources say

Intel It is looking to sell at least a minority stake in its Altera subsidiary, which would raise several billion dollars in cash for the struggling company, according to people familiar with the matter. The move would represent a sharper departure from its previous public messaging about the company's prospects for the larger company.

The storied semiconductor firm made overtures to several private equity and strategic investors this week, said the people, who requested anonymity to speak freely about confidential information. Intel has expressed to some investors that it may acquire a majority stake in the Altera business, which was valued at $16.7 billion when Intel acquired it in 2015, one of the people said.

Intel is seeking a deal worth about $17 billion, the people said.

An Intel representative declined to comment. The sale process represents a sharp departure from Intel's previous commentary on Altera, where its CEO said as recently as September that Intel's leadership views the business as a core part of Intel's future.

Intel has previously said it could monetize its Altera business through an initial public offering, possibly by 2026.

CEO Pat Gelsinger and his leadership team have previously said that Intel understands its disadvantageous position and is working aggressively to remedy it. To be sure, selling a minority stake in Altera allows Intel to more easily pursue its semiconductor fabrication ambitions and reassure investors that it has a strong path forward as an independent company.

But the sale process also comes as Qualcomm expressed interest in acquiring its onetime rival, a deal that would face fierce regulatory scrutiny and reshape the semiconductor industry. Intel has struggled with a significant debt load, and its stock has fallen more than 50% year-to-date.

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