Intel Buys Up Mobileye for $15.3 Billion
Intel today announced that it will be buying Mobileye for a total of $15.3 billion — $63.54 per share — which is around 33 percent more than what the stocks finished trading for on Friday. Israel-based Mobileye is behind some of the technology that makes self-driving cars a real possibility and has been partnered with Intel for a few years now. Mobileye’s stock jumped on the news, while Intel’s share price took a small, two percent, hit.
Mobileye focuses mostly on software for driverless cars, but also a few hardware solutions. By acquiring Mobileye, Intel is expanding its portfolio with products as diverse as cameras, sensor chips, in-car networking and roadway mapping, as well as machine learning solutions. There are also some cloud software applications as well as data management systems particular to the automotive industry which will now fall into Intel’s hands.
As the two companies have been partnered for some time now, the takeover was not entirely unexpected, but generally market observers, as well as shareholders, seem to be taking Intel’s foray into the automotive market positively. Up to now, Intel has been pretty much entirely absent from this industry and this should prove a very lucrative diversification, while positioning it diametrically opposite competitors like Qualcomm and Nvidia.
Mobileye’s current network of relationships with manufacturers should go on interrupted for now and very little is likely to change for the time being at the company’s Israeli offices: the current chairman, Amnon Shashua, will continue to head the company and no big changes regarding staff have been announced. Most importantly, a test with 40 self-driving cars, in partnership with BMW, will continue as scheduled, meaning that this technology is only going to get closer.
Fergus has been tinkering with computers since he was a kid and likes to put a stop to parties by listing the specs of all the digital devices in the room. It's best not to let him near your computer since he'll take it apart and may not put it back together again before he leaves.