• Intel sells 51% of Altera to Silver Lake for $4.46 billion.
• The deal values Altera at $8.75 billion, significantly down from Intel's 2015 acquisition cost.
• This move aims to strengthen Intel's financial position as it transitions under new CEO Lip-Bu Tan.
• Altera, facing heavy losses, will be deconsolidated from Intel's financial results post-sale.
• Raghib Hussain is set to become Altera’s CEO starting May 5.

Intel Corporation has officially agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management for $4.46 billion. This transaction, valued at $8.75 billion for Altera, marks a significant step under the leadership of new CEO Lip-Bu Tan to revitalize the struggling chipmaker, following several years of challenges and heavy investments under former CEO Pat Gelsinger, according to Channel News Asia.

The sale comes as Intel aims to bolster its financial standing after incurring substantial losses, with Altera posting an operating loss of $615 million and generating only $1.54 billion in revenue in 2024, representing just 3% of Intel's total sales. "Today's announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet," Tan stated, emphasizing a shift in strategy after years of unsuccessful diversification attempts, according to Reuters.

The deal is expected to be finalized by the second half of 2025, after which Intel plans to deconsolidate Altera's financial results from its own, marking a critical juncture in the company's strategy to streamline operations. Following the sale, Raghib Hussain, a former executive at Marvell Technology, will take over as the new CEO of Altera starting May 5, according to Bloomberg.