Investing.com -- Intel Corporation (NASDAQ:INTC) stock climbed 2.6% in pre-market Monday trade following Bloomberg News reporting that the company is close to finalizing the sale of a majority stake in its programmable chips division, Altera, to private equity firm Silver Lake Management.
The anticipated deal comes as part of Intel's strategic shift to divest non-core businesses, aiming to streamline operations and focus on its main areas of growth. Accordingly, the announcement could be made as early as this week.
Intel's acquisition of Altera in 2015, for approximately $17 billion, brought the multi-use chips, which are commonly used in telecommunications networks, into its portfolio.
However, with Altera attracting interest from other companies, including Lattice (OTC:LTTC) Semiconductor Corp. and various buyout firms, Intel's potential sale to Silver Lake could see the unit valued at significantly less than its purchase price, with estimates as low as $9 billion.
The move is seen as a continuation of Intel's efforts, announced earlier in 2024, to restructure its business by shedding less essential assets. The sale of Altera is expected to provide Intel with the opportunity to reallocate resources and capital towards more profitable and central segments of its operations.
This content was originally published on Investing.com
