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Intel has a Pretty Big Problem..

but it seems extremely short-sighted to be looking at binning off this segment?
Must be to get some quick easy money in?

They are probably struggling a bit against the noname brands who are pushing out cheap(ish) 2.5 and 10Gbe hardware now - it ain't pretty but it mostly works.
 
I think selling the networking business would be a mistake, just as selling off the memory business was.
It's standard practice for big corporations to cut sell off under preforming business units. Intel should really focus on turning around it's core business which is it's foundry and semi conductor designs, realistically Intel are the only other company out there that has any chance of offering up any competition to TSMC.
 
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