Intel sinks on news it will hang on to networking unit
Intel dropped in early trading Thursday after it disclosed plans to retain ownership of its networking unit following a strategic review of operations.
The unit, known as NEX, makes products like infrastructure processors, which do needed “housekeeping” tasks like running security checks, thereby freeing core Intel CPUs to do the higher-value operations. It also produces switches and controllers that manage and direct the flow of data to CPUs.
Sale of the unit, or a stake in it, could have generated cash for Intel CEO Lip-Bu Tan’s complex and costly turnaround effort, similar to Intel’s decision to sell a 51% stake in its Altera unit to private equity company Silver Lake in September for $3.3 billion.
Sale of the unit, or a stake in it, could have generated cash for Intel CEO Lip-Bu Tan’s complex and costly turnaround effort, similar to Intel’s decision to sell a 51% stake in its Altera unit to private equity company Silver Lake in September for $3.3 billion.
