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Could Intel Acquire Altera?Could Intel Acquire Altera?

Is Intel making a play to acquire chipmaker Altera? The San Jose, California-based chipmaker previously ended buyout talks with Intel last month after the companies were unable to agree on a price.

Dan Kobialka

May 26, 2015

2 Min Read
Altera CEO John Daane
Altera CEO John Daane.

Altera (ALTR) reportedly is reengaged in acquisition talks with Intel (INTC). The San Jose, California-based chipmaker previously ended buyout talks with Intel last month after the companies were unable to agree on a price.

In addition, an unnamed source familiar with the talks told the New York Post that both companies could reach an agreement soon: “You should not be surprised if a deal comes together quickly.”

An Altera filing on the results of a recent shareholder meeting revealed that there were more than 240,000 votes in favor of a possible Intel buyout; conversely, fewer than 15,000 votes were against it. Altera shares rose after the news broke about the companies’ failure to agree to terms, and a person familiar with the matter told Reuters at the time that discussions between the companies could be rekindled at a later date.

So what could a possible agreement mean for Altera, Intel and both companies’ respective customers? Past reports indicated that a possible Intel-Altera deal could have topped $10 billion, and the potential addition of Altera could help Intel expand globally.

Altera, which provides chipsets that are used in telecommunications products such as test and measurement systems and cellular base stations, posted sales of $435.5 million in the first quarter of 2015. This total represented a 9 percent decrease from the fourth quarter of 2014 and a 6 percent decline from the first quarter of last year, and Altera CEO John Daane also noted that his company’s first quarter proved to be “more challenging than expected.”

Intel recorded $12.8 billion in revenue during the first quarter of this year, and CEO Brian Krzanich noted that his company must find ways to extend its market reach.

“Year-over-year revenues were flat,” he said in a prepared statement. “These results reinforce the importance of continuing to execute our growth strategy.”

What are your thoughts on Altera and Intel? Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].

About the Author(s)

Dan Kobialka

Contributing writer, Penton Technology

Dan Kobialka is a contributing writer for MSPmentor and Talkin' Cloud. In the past, he has produced content for numerous print and online publications, including the Boston Business Journal, Boston Herald and Patch.com. Dan holds a M.A. in Print and Multimedia Journalism from Emerson College and a B.A. in English from Bridgewater State College (now Bridgewater State University). In his free time, Kobialka enjoys jogging, traveling, playing sports, touring breweries and watching football (Go Patriots!).  

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