We've chronicled a few of these. In 2006, Cortina Systems Inc. paid $115 million for pieces of the Giga and Level One business Intel bought for $3 billion in bubble-era stock. (See Intel Hands Off to Cortina.)
Strauss has one that I think tops them all, though. Intel bought VxTel, a pre-revenue VoIP-chip company, for $550 million. (See Intel Snatches VOIP Startup for $550M.) Strauss claims, citing sources close to the former VxTel, that Intel eventually sold the startup's remains for less than $1 million. You can find the anecdote repeated in this 2006 report on Intel backing away from the communications market.
Anyone else got a favorite selloff story, Intel or otherwise?
— Craig Matsumoto, West Coast Editor, Light Reading