Intel Buys Altera: Much Awaited Negotiations Finally Happening; Acquisition Cost Rings At An Estimate of $17 billion?

Intel Corp is on the verge of finalizing its deal to acquire Altera but a possibility that this deal may not push through.

Intel is said to close the bid with an estimate of $17 Million. But then Intel is expected to pay Altera's Stockholder at about 54% share. As of Friday, the shares close at $48.85. It has increased its value over 15% as compared to its last Thursday's $46.97, which means Altera is valued more than $16 million.

Intel, the world's biggest chip maker, continues its proposal with the Altera for a "consolidation wave" in the semiconductor industry. The merging of two companies can generate more profit.

Intel Corp has seen the brighter future in acquiring Altera. Intel Company will continue to be the number one maker of processors and memory for PCs and servers including mobile devices, while Altera's forte is on field programmable arrays (FPGAs).

The functions of the chips could be used in the most flexible way. It could enhance the overall system performance of the servers. Eventually, the customers would want to have those chips in their computers. Thus, revenue can grow handsomely.

Acquiring Altera would make Intel , a company based in Santa Clara, California, one of the giant companies in the world of computer technology. It will also protect Intel in its stronghold in Chips since a portion of the Intel's market is now using Altera and Xilinx Inc to speed up the consumer's server. If Intel will successfully buy Altera, the company will now have an internal source to counter the growing needs of the consumers.

Though, there might be other big companies that will invent and devise custom chips; Intel with Altera would be a strong competitor and will be hard to bend.

Intel has acted in response to the needs of the consumers since technology revolutionizes every so often. And the persistent negotiation with Altera simply proves that Intel is gearing towards a bigger change for the consumer's great satisfaction as far as computer technology, chips and FPGA are concerned.