Intel plans to take self-driving car unit public in the U.S. in mid-2022

Tue, Dec 7 2021

Intel has announced that it plans to list Mobileye, the Israeli autonomous driving firm it acquired for $15.3 billion in 2017, as part of an effort to branch out into new markets.

The Santa Clara chip manufacturer said Monday that it plans to take Mobileye public in the U.S. in mid-2022 via an initial public offering of newly issued Mobileye stock. The IPO could value Mobileye at more than $50 billion, according to some reports.

Intel, whose share price has fallen from $68 in April to less than $50 in December, said the listing will create value for Intel shareholders. It added that it will remain the majority shareholder of Mobileye.

Intel CEO Pat Gelsinger hailed the acquisition of Mobileye as a success, adding that Mobileye’s revenue will be 40% higher in 2021 than it was in 2020.

“We definitely see the opportunity to bring Mobileye forward in a big way,” he told CNBC Tuesday, adding that the unit has been somewhat hidden inside of Intel, which has a market cap of $200 billion.

Sales at Mobileye have tripled since Intel took it over and the company did around $1 billion in revenue last year. “This is already very profitable,” Gelsinger said.

KEY POINTS

• Mobileye, an Intel-owned company that makes key processors for self-driving cars, has filed for an IPO, according to an SEC filing on Friday.
• The move to list Mobileye on the Nasdaq is part of Intel’s broader strategy to turn around its core business.
• Intel acquired the company for $15.3 billion in 2017