Intel may have bailed on what could have been its biggest acquisition ever

Robert Galbraith/ReutersIntel CEO Brian Krzanich

Intel has reportedly dropped any acquisition talks with Altera, according CNBC. The Wall Street Journal reported last month that Intel was considering buying the company, which has a market value of $10.4 billion.

Following CNBC's report, Altera stock has dropped by more than 11% in pre-market trading.

Neither party could agree on a price, according to CNBC, and the two companies haven't spoken in more than a week. Intel's initial offer was said to be around $50 per share.

The deal would have made sense for Intel - 90% of the company's operating profit comes from PC chips. The deal with Altera would have allowed Intel to diversify its business. Intel also cut its Q1 outlook by almost $1 billion last month due to weaker than expected desktop PC sales.

Altera makes FPGA chips, which are special types of chips that can adjust their functionality after manufacturing. Intel's CPU chips can only perform one set of functions after they're made.

Intel's largest acquisition to date came in 2010 when it bought McAfee for $7.68 billion. At its current market value, Altera could have been Intel's largest acquisition ever.

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