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Rumors Intel Altera Deal is Close

The NY Post reported today that sources told them that an Intel/Altera deal was close, and could be done by the end of next week.

At the same time, we are hearing from multiple Altera customers who are opposed to the deal. The customers are concerned that Intel would shift Altera’s focus away from meeting their needs, and that Intel is poorly equipped to run an FPGA business – which is almost more of a software and service business than a “chip” business.

Key concerns surround Altera’s highly-capable AE resources who are viewed as essential to customer success with complex FPGA designs.

All of this while a growing group of Altera investors are pressuring Altera management to take a deal.

So, it appears that there may be a situation where Altera’s investors are exactly opposed to Altera’s customers on the issue.

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