Intel buying Mobileye for up to $16B to expand in self-driving tech
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Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#2Picking up Tesla's table scraps for $16B seems like a losing move.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#3I thought $16B for yet another autonomous car developer R&D outfit seemed excessive even by Intel's standards, but it looks as if Mobileye has been providing assistant/enhancing technologies (eg collision warning systems) for more than a decade.
This is probably not too bad a spot to be in, at least until fully autonomous vehicles have become mainstream. They seem to be profitable, at least.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#4Mobileye was founded in 1999, a huge leap of faith to get into the self-driving technology back then.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#5Picking up Tesla's table scraps for $16B seems like a losing move.
The split was caused by Tesla pushing targets that Mobileye was not comfortable with. I don't think we know enough about the situation without a report from someone inside the company but it's a little extreme to call them Tesla's table scraps.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#6$16B is a great price for Mobileye's team, but I am not sure it is the best move for Intel. But I guess Intel will try to sell package deals to car markers and thus use this to try to keep NVIDIA and ARM from locking up the in-car market.
Thus it is a strategic move on Intel's part to fend off competitors rather than reflective of the intrinsic value of Mobileye.
BTW what was Mobileye's revenue last year and profit margin? About $350M in 2016, with probably $500M in 2017 it seems. So the multiple is around 30x revenue or so?
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#7$16B is a great price for Mobileye's team, but I am not sure it is the best move for Intel. But I guess Intel will try to sell package deals to car markers and thus use this to try to keep NVIDIA and ARM from locking up the in-car market. Thus it is a strategic move on Intel's part to fend off competitors rather than reflective of the intrinsic value of Mobileye. BTW what was Mobileye's revenue last year and profit m…
There is no such thing as intrinsic value. There is price and price ($16B) is determined by the market.
Talking about PE and multiples is pointless for tech companies where synergies and rapid adoption/changes are common.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#8My wife has Mobileye in her car - it works quite well - warning you when you're too close to the car in front or when you're wandering out of your lane.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#9Intel has made acquisitions of almost $40 billion in the past couple of years. It will be interesting to see if they can make this money back as competition becomes more fierce in the PC and server markets because of AMD and Qualcomm.
Re: Intel buying Mobileye for up to $16B to expand in self-driving tech
#10I can only assume that Intel will axe some of the C-Suite and attempt to rekindle the flame with Tesla. Mobileye was functioning a bit too much like a traditional (and glacial) vendor in the automotive industry. Tesla wanted to develop and implemented quickly, while Mobileye became a bit too focus on the what-ifs.
The truth is, Tesla vehicles are safer than their counterparts in almost every situation imaginable. Mobileye screwed the pooch when they began issuing negative press releases that attempted to push all the responsibility and potential liability onto Tesla.
Intel is smarter than that. Intel has become fairly accustomed to implementing and following through with aggressive development and launch cycles.