I read somewhere that INTC wants to get into the foundry business to compete with TSM and the like. Sounds even crazier. Techzines are worse than business rags.
Im long ALTR but to say there's no risk is naive. I've owned many dozens of merger arb plays and every once in a while you get mauled for 20-30% when a deal implodes.
It is a very logical buy. I am really hoping this comes true: Intel unveils new Xeon chip with integrated FPGA, touts 20x performance boost http://www.extremetech.com/extreme/...h-integrated-fpga-touts-20x-performance-boost
I have a PhD in EE and work with FPGAs and I know the need for a combination of a DSP and a programmable device. My point was that there was no need to buy the company. They could easily pay 1B and license it. When you need milk, you don't buy a grocery store or a farm.
Well, INTC and ALTR have had such a close relationship for so many years that I think they finally decided that it would make sense to tie the knot. Could it have also worked without the marriage? Of course. I suspect that INTC is trying to evolve into more of the embedded market and therefore buying/merging with ALTR makes perfect sense going forward as well.
Lets wait and see what happens. I am expecting a good size layoff from both sides after merge is done.