Intel Said to Be Close to Completing $16 Billion Altera Deal

30 May 2015 | Author: | No comments yet »

Intel Said to Be Near Altera Purchase as Chip Deals Accelerate.

SAN FRANCISCO—A potential deal for chipmaker Intel to buy Altera could help the company further diversify the market for its chips beyond personal computers into cloud computing.Intel Corp. is near a deal to acquire Altera Corp. in a purchase that will take out yet another chipmaker and add to a record year for industry consolidation, people with knowledge of the matter said.Dealing chips: Reports on Friday that Intel Corp. resumed talks to buy chipmaker Altera Corp. sent Intel up 1.4 percent to $34.50 and Altera up 4 percent to $48.85.

The world’s largest chipmaker may reach a deal for Altera as soon as this weekend, the people said, asking not to be identified discussing private information. Another chip deal: Chipmakers Avago Technologies and Broadcom gained Wednesday on merger rumors: Broadcom rose 20 percent, to $56.40 and Avago rose 9 percent, to $143.29.

The New York Post, citing a source close to the situation, reported that Santa Clara, Calif.-based Intel was close to completing a $15 billion acquisition deal for its smaller rival. Drone: Shares of GoPro jumped 6 percent, to $56.74 Thursday after the company said it will introduce a quadcopter drone for the consumer market in 2016. The company makes integrated circuits called Field Programmable Gate Arrays (FPGAs) which can be reconfigured and reprogrammed, making them very flexible. “FPGA’s are used in cellular phone networks at the base station, so you use them every day on the other side of your phone connection,” said Mark Hung, an analyst with Gartner Research. Altera’s earlier rejection spurred some shareholders to pressure the company to reconsider an offer they thought valued Altera higher than it could reach on its own. The largest deal ever in the $300 billion semiconductor business was announced Thursday when Avago Technologies Ltd. agreed to buy Broadcom Corp. for $37 billion.

Merger approval: Tobacco companies Lorillard and Reynolds American rose Wednesday after the Federal Trade Commission gave its tacit approval to their $27.4 billion merger. In March, Freescale Semiconductor, which makes chips used in cars, agreed to a $11.8 billion cash and stock take-over by Dutch chipmaker NXP Semiconductors. If such a deal is in place, when it expires on Monday Intel would be free to begin a hostile takeover attempt if a purchase price has not been agreed on. “Whenever you’re trying to buy a company, it’s always better when the management team agrees to the takeover, that’s always the preferred route. Let’s play: GameStop, the video game retailer, posted results that exceeded analysts’ estimates, helped by the sale of recently released video game titles.

Here you can write a commentary on the recording "Intel Said to Be Close to Completing $16 Billion Altera Deal".

* Required fields
Twitter-news
Our partners
Follow us
Contact us
Our contacts

About this site