Intel, Mobileye, and Smiling Curves

Intel + MobileyeThis is the context for Intel’s acquisition. First off, yes, it is ridiculously expensive. The purchase price of $14.71 billion (once you back out Mobileye’s cash-on-hand) equates to an EBITDA multiple of 118; it helps that Intel is paying with overseas cash, which the company hasn’t paid taxes on. And second, I’ve long argued that ... See more

Cars and the FutureA little over a year ago I explained in Cars and the Future that there were three changes happening in the personal transportation industry simultaneously:Drivetrains were changing from the internal combustion engine to electricCar operation was moving from human-based to computer-based (i.e. self-driving cars)Ownership was shift... See more

There is a fascinating paragraph in this Wall Street Journal article about Intel’s purchase of Mobileye NV, an Advanced Driver Assistance System primarily focused on camera-based collision avoidance and, going forward, autonomous driving:The considerable premium Intel is willing to pay for Mobileye reflects the enormous value tech companies see in ... See more