Intel Explores Sale of Networking and Edge Unit Amid Financial Struggles
Intel has initiated the process of identifying potential buyers for its Networking and Edge (NEX) division, a move aimed at bolstering its financial position and preparing for future expansion. The company’s recent financial report revealed a widening net loss,contributing to a significant drop in its stock value.
The NEX division encompasses Intel’s former Altera business.Intel acquired Altera, a programmable logic device manufacturer, in 2015. Earlier this year, Intel divested its majority stake in Altera, retaining a minority interest.
Details regarding potential buyers for the NEX division have not been publicly disclosed. Intel’s customer letter indicates that the company has “begun the process of identifying” suitable partners, suggesting that the sale process might potentially be lengthy.
Reports of Intel’s exploration of selling the NEX division first emerged in May, when Reuters cited sources indicating that the company was seeking buyers. At that time, a formal sale process had not yet commenced, but recent developments suggest progress has been made.
Intel’s stock experienced a decline of over 8% on Friday, following the release of its quarterly earnings report on Thursday evening. The report highlighted an increase in net losses to $2.9 billion for the second quarter, compared to $1.6 billion in the same period last year.
