Intel announced Monday night that it was planning an IPO for its self-driving auto business known as Mobileye, a deal that could raise billions of dollars to fund the chipmaker’s semiconductor business.
Intel said it will keep a controlling stake in Mobileye, an Israeli company Intel was acquired for $ 15.3 billion in 2017.
Self-driving cars have come to market much more slowly than Intel and other tech companies expected, but Mobileye’s technology remains highly regarded, the Wall Street Journal wrote on Monday the deal could be valued at more than $ 50 billion.
So Mobileye’s IPO could raise a ton of money for Intel to invest in new CEO Pat Gelsinger’s turnaround plan, which sees the company see more than $ 25 billion this year – and more so in the years to come – Dollars to rebuild its chip technology.
These sums appalled investors, with Intel’s market value plummeting $ 26 billion after Gelsinger announced its spending plans in October. But on Monday night, the prospect of Mobileye’s IPO thrilled Wall Street, sending Intel shares up more than 8% to $ 55.20 in after-hours trading.
Intel is Oregon’s largest employer, with 21,000 employees in its Washington County factories and offices. But the Oregon business is heavily focused on semiconductors, with little exposure to the Mobileye business.
Intel said it plans to go public with Mobileye sometime in 2022 and said it “has no intentions to spin off or otherwise dispose of that stake.”