Why Acquiring Altera Can Be A Good Thing For Intel

Buying Altera could be a good move for Intel as it will help the company to further diversify its addressed markets and reduce its dependence on the PC market. Altera generates close to $2 billion in revenue and has marginally higher profit margins than Intel. With its elevated stock price, Altera has a current market cap of approximately $13 billion and enterprise value of $12 billion. At the end of 2014, Intel had cash and cash equivalents of $14 billion. If the deal goes through, this will be...