Intel Joins Silicon Valley’s Race to Make Best ‘Server on Wheels’ With Mobileye Deal Acquisition marks latest investment by a technology company in the future of autonomous cars By Ted Greenwald
https://www.wsj.com/articles/intel-to-buy-mobileye-for-15-3-billion-1489404970
Intel Corp. agreed to buy Israeli car-camera pioneer Mobileye NV for $15.3 billion, one of the chip maker’s biggest acquisitions ever and the latest bet on Silicon Valley’s vision of cars as turbocharged computers on wheels.
The deal, which amounts to a 34% premium over Mobileye’s closing share price Friday, would give Intel ownership of a widely used technology in the rapidly emerging business of computer-assisted driving. It also would give Intel a long list of customer relationships Mobileye has with auto makers, including General Motors Co., Volkswagen AG and Honda Motor Co.
Intel is joining a race to create autonomous vehicles that has accelerated recently as unconventional auto companies have jumped in, sparking bidding wars for companies that specialize in self-driving gear or software. Besides Intel, Tesla Inc., Alphabet Inc.’s Google and Uber Technologies Inc. also have made big bets on car technology. Their entry has created a complex web of relationships between Silicon Valley, Detroit and other automotive hubs that has shifted the center of gravity in the global car business.
The deal for Mobileye is the second largest in Intel’s 48-year history, after its $16.7 billion acquisition of Altera Corp. in 2015, and its size signals Intel’s strong desire to stake out a significant position in the market after the chip maker largely missed out on the smartphone boom.
Comments are closed.
