Under CEO Pat Gelsinger, Intel is looking for ways to support its hit stock price, so it’s looking for another stock market listing for Mobileye, a driver-assisted and self-driving car unit. It states that it is planning.
A US chip maker said listing is “unleashing value” for shareholders, but will retain control of the majority of the small but fast-growing sector of the chip business that has expanded in recent years.
This decision, as Wall Street has made, has followed a steady decline in Intel’s stock in recent months, showing strong backlash among major rivals. Lost self-confidence Gelsinger’s ability to enable rapid turnarounds for core PC and server chip businesses.
Intel’s share price soared 8% on Monday’s Mobileye news in aftermarket trading. They closed the formal deal early in the day, about 25 percent below the highest point they hit, shortly after Gelsinger took the top job earlier this year.
Intel In 2017, we paid Mobileye $ 15 billion as part of the diversifying competition for new chips markets. At that time, the acquisition of an Israeli company was considered high for groups with revenues of less than $ 400 million in the most recent fiscal year at the time.
But the soaring valuations of fast-growing tech companies have outstripped their deals ever since, and the self-driving car businesses Waymo and Cruise are each worth more than $ 30 billion, despite no meaningful revenue. I have.
One of Israel’s greatest technological successes, Mobileye is recognized as an early leader in the development of advanced collision avoidance systems used by many prominent automakers.While playing an important role in helping Tesla establish an autopilot, Tesla pushes safety limits and pushes more products. Unmanned driving A better solution than Mobileye believed.
According to industry sources, Mobileye’s core technology didn’t have a clear lead over its rivals, but it was skilled in establishing relationships with major automakers.
One of Mobileye’s strengths is its two-track approach to developing autonomous driving. The company has long been a leading supplier of large-scale driver assistance systems, earning revenue and industry influence each year from the shipment of automotive-grade products.
But at the same time, Mobileye “Moonshot” approach Development of a fully autonomous robotaxi to compete with Waymo and Cruise.
Intel announced on Monday that Mobileye’s revenue will increase by more than 40% across 2021. The business generated $ 1 billion in revenue and operating profit of $ 361 million in the first nine months of this year.
Intel said it plans to go public in mid-2022, but the final decision has not yet been made and will depend in part on market conditions. “I had no intention of spinning off or selling that majority ownership,” he added.
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