Yeah 15B is lots of cash to put in to something they think is a fad. I'm hoping they thknk its goin to be a bright future with this acuasition.
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@2jlc - In terms of technology integration, I can't think of any acquisition that was successfully integrated into Intel CPU architecture. And there were a lot of them.
That said, McAfee, while never at all integrated, was immediately accretive to revenue ($2.2B in 2016), and slightly grew thru their time at Intel. They will spin off and probably thrive, and Intel will continue to make money on the investment. Altera, while still in the to-be-integrated phase, was also immediately accretive to revenue, to the tune of $1.7B in 2016, though revenue was down historically due to FPGA transition issues. Both of these large acquisitions were of market leaders in PROVEN markets. MBLY will bring in $500M+ yearly revenue once the deal closes, and the public talk is to leave them alone to do their thing, in an evolving market with many, many future variables.
Either way, $15.3B is way too much.
@1ntv: Just out of curiosity. I could not recall any successful acquisition (as in: their tech used say two years later), so are there any at all? Large scale ones like Altera, McCrap, and Mobileye probably needs a little more time to die I guess.
What is there more to comment. It just reinforces Intel's trajectory as a great company blinded and retarded by its own 4 decade long monopolistic success and unchecked hubris. The top management have become one bunch of inbred genetic deformities with none to challenge their emperor robes. If anyone wants to take a bet with money, this one shall also go down the drain. Most of us will be around to validate this prediction.
Yeah, I hear Nutanyahu is pushing to award BK a special award for singlehandedly making Israel startup haven 2.0, making countless Israelis wealthy beyond their wildest dreams and motivating scores of wannabes to create startups with the sole intent and ultimate goal of selling to BK.
The Mobileye purchase is concerning. The tech is camera based, but all other vendors in the self-driving car are working on LIDAR. After the McAfee purchase, why would I believe they have a plan? As mentioned earlier, chasing where the market is not where it will be. With margin pressure from AMD, mobile, and data center margin forecast lowered, could be another disaster.
It's really not stupidity. The repetitive acquisition failures are part of arrogant and ignorant layers and layers of management... Many of the acquisitions become poisoned once Intel
umbrella takes hold... Seen it for past 20 years.. over and over and over again.
It ain't a fad, but another desperate attempt to catchup. Intel with a 100000 people and billions in RD and world class designers, technologists and more, simply couldn't piece togather any credible product. So BK will try and buy it. Of course intel has failed with every acquisition to date, and so little hope this will be any different.
In a couple years they will write down billions on this line they did every other other acquisition as structural the culture and management at Intel is so poisonous to acquisitions the key talent soon leaves.
As a notably observer has said, Intel chases where the puck is but now where the puck is going because BK is too stupid to understand nor visionary enough to know where the phuck he needs to take the company. It is more important to make press than x86 and TMG
OP here......I'm noticing that when a logical statement is made on this site no one has anything to say.... hmmmmm interesting..