April 30, 2017

Intel to Buy Driverless Tech Company Mobileye for $15.3 Billion

14 March 2017, 12:39 | Muriel Sparks

Intel buys Mobileye for reported $15 billion in massive self-driving car coup


The fact that Mobileye was purchased by Intel, rather than an OEM or Tier 1 supplier, should be a good thing, according to Ben Volkow, CEO of Otonomo (another Israeli automotive tech company).

It is the biggest technology takeover in Israel's history and the largest purchase of a company exclusively focused on self-driving.

In a statement announcing the deal, Intel claims that the market for various vehicle systems could be worth about $70 billion by the year 2030, and the deal with Mobileye puts the chip maker in competition with new-era auto companies such as Tesla, as well as old rival such as Qualcomm, which recently acquired chip maker NXP.

Intel said: "The acquisition will couple the best-in-class technologies from both companies, including Intel's high-performance computing and connectivity expertise and Mobileye's leading computer vision expertise to create automated driving solutions from the cloud through the network to the auto". The acquisition process has begun, and will be completed in nine months.

Mobileye generated $358 million in revenue past year and $108 million in net income, meaning it's getting taken out at 42.7 times sales and 141.7 times earnings. The company is known for their computer vision technology which aids a number of operations.

Taiwan bans poultry imports from 2 USA states plagued by avian flu
The commercial breeder where the outbreak was detected supplies Tyson Foods, but officials have declined to identify the breeder. This is the first known case of HPAI in a commercial poultry facility in the United States this year, the USDA said .

Self-driving cars are widely seen as the future of transportation and a growth area, but the Intel deal depends on more than technology as it looks to expand revenue in an increasingly competitive nascent sector. 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. 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. The company is now going to lead Intel's autonomous driving division, which will be based in Israel.

Intel just became a bigger player in the realm of autonomous driving, announcing its planned acquisition of Mobileye today.

Aviram reportedly told Netanyahu that the company and its research would remain based in Israel.

Mobileye NV (NYSE:MBLY) was downgraded by equities researchers at Dougherty & Co from a "buy" rating to a "sell" rating in a research report issued on Monday.

Intel will own Mobileye through one of its subsidiaries, which will pay $63.54 per share.

Other News

Trending Now

Russia's Ties With Trump Administration And Jeff Sessions
In a tweet on January 30, Trump said that "big problems at airports" were caused partially by "the tears of Senator Schumer". Sessions said he met with Ambassador Sergey Kislyak in his official capacity as a member of the Armed Services Committee.

Arsene Wenger takes thinly veiled dig at Arsenal star
Sportsmail understands that Sanchez was dropped after being involved in a training ground bust-up with Wenger. Arsenal played significantly better with their star striker on the pitch, but ultimately fell.

YouTube launches its own live TV streaming service
Local news programming from network affiliates will also be included, according to Robert Kyncl, YouTube's chief business officer. Since its inception, YouTube in particular has had copyright issues with the TV and movies studios and music labels.

India accepts Pak invite for Indus dialogue
The function of the commission is to maintain and exchange data and co-operation between the two countries. According to Pakistan, this move by India violates the treaty.

World's heaviest woman undergoes surgery for obesity in Saifee Hospital
Doctors had suspected that her obesity is linked to one or multiple genes of the 91 which are known to be connected to obesity. Bariatric surgery is a procedure that reduces weight loss by restricting the intake of food the stomach can retain.

Explosion and gunfire hit military hospital in Kabul
In a series of tweets last month, Ghani said the fight against terrorism goes beyond just Afghanistan. Another ISIS suicide bomber killed 22 in an attack on the Afghan Supreme Court in February.

Hawaii-bound flight diverted over blanket dispute
Footage of the incident showed the man, wearing a hoodie and a baseball cap as he was escorted from the plane by two officers. Another passenger, George Enriques, told the Honolulu Star-Advertiser that the man told him: "They're not treating me right".

Turkey military says chief meeting US, Russian counterparts on Syria
Turkey has said it wants to create a safe zone inside Syria along the border, 60 miles long and about 28 miles deep. Turkey views the YPG as an extension of the Kurdistan Workers Party (PKK), which is waging an insurgency in Turkey.

Meryl Streep and Tom Hanks to make first film together
President Donald Trump after she criticised him for belittling a disabled journalist at the Golden Globes in January. Hollywood's reigning king and queen, Tom Hanks and Meryl Streep, are about to star in their first movie together.

EPA head: Carbon dioxide not 'primary contributor' to global warming
EPA and the agency's Endangerment Finding on Greenhouse Gases respective of the applicable statutory framework established by Congress".