Intel Scales Back Mobileye Valuation To Just $20 Billion

Intel has been preparing its autonomous driving and ADAS unit – Mobileye for an IPO. For months, this IPO was viewed as one of the Santa Clara-based semiconductor giant’s growth engines, but now, Intel has scaled back its ambitions for this IPO. Originally, Intel was expecting a $50 Billion valuation for Mobileye which it acquired five years ago. Now, it has scaled back expectations to $20 Billion as many self-driving startups have lost value in the last 7-8 months.

But one of the reasons for this lower valuation is the fact that Intel will sell a smaller number of shares than originally planned. The IPO market is seeing the worst downturn in the last two decades. Mobileye has ambitions of being listed on the Nasdaq starting from October 26.  This will happen one day before Intel reports its Q3 earnings.

Mobileye has plans for a roadshow for investors as well which is running a little late. Intel plans to keep most of the money it gathers from the IPO and will use it to build new chip fabs.

Mobileye was founded in 1999 in Israel, and it was acquired by Intel in 2017 for $15.3 billion. It counts BMW, Audi, Volkswagen, Nissan, Honda, GM and even Mahindra in India as its customers.