Intel Sells Majority of Altera to Silver Lake in $4.46B Strategy Move

Intel Sells Altera Stake: $4.46B Deal with Silver Lake

Intel has announced it will sell a 51% stake in its Altera programmable chip unit to private equity firm Silver Lake for $4.46 billion. This move, led by new CEO Lip-Bu Tan, is part of Intel’s strategy to cut costs, refocus operations, and strengthen its balance sheet amid efforts to transform into a contract chip manufacturer. The deal values Altera at $8.75 billion—less than half the $17 billion Intel paid to acquire it in 2015. Altera, which makes programmable chips for industries such as telecom and defense, generated $1.54 billion in revenue in 2024 but posted a $615 million operating loss. Intel has been preparing to spin Altera off into a standalone unit and previously hinted at selling a stake. The deal, expected to close in the second half of 2025, will allow Intel to deconsolidate Altera’s financials from its own. Following the announcement, Intel’s shares rose 3.9% in premarket trading. Former Marvell Technology executive Raghib Hussain will take over as Altera’s CEO on May 5, replacing Sandra Rivera. The sale is seen as a key step in Intel’s broader turnaround plan under its new leadership.

Silver Lake Buys Majority Stake in Intel's Altera for $4.46B