Investing.com - Intel (NASDAQ:INTC) is eyeing a possible divestment of its network and edge businesses as new CEO Lip-Bu Tan aims to rid the chipmaker of operations he does not see as vital, according to Reuters.
Citing three sources familiar with the matter, the news agency said talks on the decision are part of Tan’s strategy to focus Intel employees on core units like personal computers and data center chips.
Intel has been considering both when and how to exit the division, known previously as NEX in its financial statements, and has engaged with third parties, Reuters reported. The company has interviewed investment bankers to select an advisor for the sales process, it added.
However, a formal deal process has yet to be launched and possible buyers have not been solicited, Reuters said, noting that internal discussions are at an early stage.
Tan, who took over at the helm of Intel in March, has targeted shedding assets as a crucial pillar of his push to focus in on the firm’s core offerings following a largely failed attempt by his predecessors to diversify its operations. Intel has reportedly been losing its share of the market for data centers and PCs.
Intel’s finances were particularly strained by heavy bets under previous head Pat Gelsinger on its contract chip manufacturing business.
In his first major move in April, Tan oversaw Intel’s $4.46 billion sale of a 51% stake in its Altera programmable chip unit to buyout group Silver Lake. At the time, Tan said he was committed to "sharpening our focus, lowering our expense structure and strengthening our balance sheet".
Before the Silver Lake sale, Intel had been preparing to spin off Altera through a public offering.