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Intel is set to sell off 35 million shares in Israel’s Mobileye, a company that develops automated driving systems. The sale is expected to bring in $1.5 billion. And that is not all. The stock being led by Goldman Sachs and Morgan Stanley could see the sale of an additional 5.25 million shares at a later time.
After the sale, Intel will still own 88.7% of Mobileye which is valued at about $34 billion. And this is even after the company hit a bump in May, seeing a drop in value after a 15% decline in sales forecasts. And its shares also fell by 2.73% on Monday closing at $42.37. But for the first quarter of 2023, Mobileye reported revenue of $458 million, up 16% from the corresponding quarter of 2022. GAAP net profit was $79 million compared with a net loss of $60 million in the first quarter of 2022. Non-GAAP net profit was $115 million, down 4.2% from the first quarter of 2022.
In 2017, Intel bought out Mobileye for $15.3billion. Last October the company held a second IPO on the NASDAQ with a $16.7 billion valuation. The company floated 41,000,000 shares of its Class A common stock at an initial public offering price of $21.00 per share.
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Founded in 1999, Mobileye offers autonomous driving and driver-assist technologies, harnessing “world-renowned expertise in computer vision, machine learning, mapping, and data analysis.” The idea is simple: warning systems alert drivers of a possible collision. Eventually, the idea is to have entirely self-driving cars that can avoid accidents entirely.
Amnon Shashua is an Israeli success story. He founded Mobileye and saw it through that company’s acquisition by Intel. Shashua still serves as Mobileye CEO and President while also as a senior vice president at Intel. The 63 year old is also is a computer science professor at the Hebrew University in Jerusalem.
