Intel said to drop Altera acquisition after talks failed

The little-known semiconductor and software company saw its share price rocket after news of the negotiations began. Now, according to sources, those talks are over.

(Image: CNET/CBS Interactive)

Intel has reportedly dropped its bid to acquire semiconductor and software company Altera, after months of talks failed.

Sources speaking to CNBC said the two companies had not spoken in more than a week after they could not agree on a price. Speculation pegged the price to be about $50 per share range.

Two weeks ago, news of early negotiations leaked out, sending Altera's stock price rocketing by more than 28 percent.

On Thursday, shares in Altera were down by as much as 9 percent in early-morning trading. Shares in Intel were flat, apparently unaffected by the news.

The San Jose, Calif.-based semiconductor company produces programmable logic devices and related development software. But it's not immediately clear how Altera's technology would integrate with Intel's ongoing development lines. Most recently, Intel's processors became the foundation for Altera's then-newest 64-bit ARM chip.

It's also not known how much of an impact this will have on Intel's future product lineup.

We reached out to Intel but did not hear back at the time of publication. If we hear back, we'll update the piece.