Intel plans to list Mobileye autonomous driving unit separately

Intel said it plans to seek a separate stock market listing for Mobileye, its driving assistance and self-driving car division, because it hopes to support its hard-hit share price under the leadership of CEO Pat Gelsinger.

The American chipmaker said that the listing will “release value” for its shareholders, but it will retain majority control of the division, which has been a small part of its expanding chip business in recent years. But it has grown rapidly.

As Wall Street lost confidence in Gelsinger’s ability to bring a turn for its core PC and server chip businesses, Intel’s stock price has fallen steadily in recent months, making this decision after a strong rebound among its competitors.

Intel shares rose 8% in after-hours trading on Monday due to Mobileye news. They closed the formal transaction earlier in the day, which was about 25% below the high that Gelsinger hit shortly thereafter. Hold the highest position This year.

Intel spent US$15 billion to acquire Mobileye in 2017 as part of the race to diversify into the new chip market. For the group that had revenue of less than US$400 million in its most recent fiscal year, the acquisition was considered costly.

However, since then, the soaring valuations of fast-growing technology companies have overshadowed the deal. Self-driving car companies Waymo and Cruise Worth more than 30 billion U.S. dollars Although there is no meaningful income.

Mobileye is one of Israel’s biggest technological successes. It is recognized as an early leader in the development of complex collision avoidance systems and is used by many well-known car manufacturers.

It played an important role in helping Tesla establish Autopilot, but as Tesla began to end this relationship in 2016 Break the safety limit And market the product as a driverless solution, not what Mobileye thinks.

Industry sources said that Mobileye’s core technology is not clearly ahead of its competitors, but it is good at building relationships with large automakers.

One of Mobileye’s strengths is its development of a two-track approach to autonomous driving. For a long time, it has been a leading supplier of large-scale driving assistance systems, gaining revenue and industry influence through transportation of automotive-grade products.

But at the same time, Mobileye also took “Moon landing” method Develop fully autonomous robotic taxis to compete with Waymo and Cruise.

On Monday, Intel said that Mobileye’s revenue will grow by more than 40% throughout 2021. The business’s revenue in the first nine months of this year was US$1 billion and operating income was US$361 million.

Intel said it expects to conduct an initial public offering of Mobileye shares in mid-2022, but has not yet made a final decision and will depend in part on market conditions. It added that it “has no intention to divest or otherwise divest its majority stake.”

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