HB Weekly Wrap: Intel Pays Up For Mobileye, But So What?

The biggest highlight of the week arguably was Intel’s purchase of Mobileye.

Reaction in the stock market was muted, with the shares of the US-based behemoth essentially unchanged since the announcement, but it is possible to speculate that Intel stock remains undervalued at current levels.

Surely, the acquirer paid a massive premium given the headline multiples associated to the transaction — the target was snapped up for about $15bn, but it generated only $358m of revenue and $191m of Ebitda in 2016. However, its growth rate has been sensational in recent years, and Intel possibly decided to bid up also because Mobileye has also become profitable in past 24 months.

Chief executive Brian Krzanich noted that Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions, while Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers.

“Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers,” he added.

Meanwhile, Tech Crunch pointed out that the deal represents “the biggest-ever acquisition of an Israeli tech company,” while flagging that Intel’s autonomous driving division will be based in Israel.

Another sign that we live in a cash-rich world where innovation plays a pivotal role came from Tesla, which wrapped up another fundraising worth over $1bn, raising more money than it planned initially.

Elsewhere, privacy issues and data exploitation were other trending topics in the past few days, which were also characterised by mounting cyber security concerns.

Trending Tech: Google

Key highlight of the week:

Source: Re/Code
Source: Re/Code

Trending Tools/Digital: Twitter, Telegram, FB, Uber, Yahoo…

Key highlight of the week:

Twitter
Source: Financial Times

Trending Finance: Intel, Adobe, Snap, GOPro, Toshiba, Apple, Tesla…

Key highlight of the week:

Source: Intel
Source: Intel

 

Adobe
Source: MarketWatch

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