How long before you can add this to the ever growing list of failed acquisitions?
😂😂😂😂😂😂😂😂😂😂😂😂
23 replies (most recent on top)
The company would rather chuck money into the garbage than give any sliver of it to employees.
15 billion for almost 400 million revenue, even if the sales growth is thru the roof the value is dubious, and we all know the growth will be small and profits nothing.
Good job BK in continuing to ruining this once great company
http://blogs.barrons.com/techtraderdaily/2017/03/13/intel-jefferies-throws-in-the-towel-x86-fading/?mod=yahoobarrons&ru=yahoo
How is Intel stock doing in the wake of this latest news? Seems down... apparently the analysts don't think this was a smart move.
MobilEye is practically worth nothing.
http://blogs.barrons.com/techtraderdaily/2017/03/13/intel-picking-up-mobileyes-problems-a-lot-for-a-little-says-skeptics/
Anyone see how they structured the deal? I haven't seen any details yet other than it is expected to close before EOY. Please post link if you find anything.
Astounding
CLOWN SHOES!
🤡🤡🤡
Apparently San Jose state doesn't have a basic accounting class that BK could have taken...
😂😂😂😂😂😂😂😂
My goodness, what is the BOD thinking to allow BK to do this madness. Intel debt in 2010 was just ~2billion, in 2016, it grew to 21+billion! That's a whopping 1000%! And now Intel paying 15.3billion for Mobileye with only 2016 revenue of ~390million! This is madness! Sheer madness. If any big fund managers continue to hold intc, I would be very surprised!
@ xup...Well to be fair, the laidoff intel employees probably don't have the knowledge of AI or Autonomous driving.
But in reality, it's questionable how big this market is, how profitable it will be.... And for the folks that were laidoff, some were probably experienced and knowledgeable in chip design...and probably walked over to Qualcomm, AMD, ARM, etc....
Afterall, layoffs tend to hit engineers rather than admins, HR, marketing, sales at big, bureaucratic US companies like Intel... Just like Motorola... that's one of the reaosns motorola lost its edge. Top engineering talent ended up going elsewhere to the korean companies, qualcomm,etc....
But looks like Intel management just agreed that 100,000 of it's employees are useless when it comes to engineering the leading edge tech that is on the hype train....
I am just trying to get the logic here. Intel laid off a bunch of experienced engineers to save a billion $, and then spent 15 on an acquisition that most view as very overpriced.
Other People's Money...
....usually to companies run by CEOs from MIT, Stanford, Berkeley, CalTech, etc.....
Note to intel BOD.... When you hire some one from San Jose State running a chip company...The writing is on the wall, well before it starts to "lead"....
D- students breeds and promotes D-/F- employees...The A+ employees go elsewhere.....
Anyone still doubting what I said about Intel quickly executing to death the same way Motorola did?
That's usually what happens to a big fat U.S. company that fails to innovate over decades and gradually loses it's bread and butter monopoly business, that while isn't growing as fast is still nevertheless a cash cow....
Sounds to me BK just made a lot of Mobileye employees rich... And in a few years they will be able to retire after the lockup....Meanwhile, the rest of you 100,000 or so employees can wonder when you are going to get ACT'd to pay for this.....And for the TBD profitability of AI and autonomous driving....Sound familiar? Intel and "investments" into mobile space.
Man, it' sort of cool to be the CEO of Intel. It's like throwing darts at a dartboard wondering which one will stick, and you don't even have to pay for the very expensive darts you are throwing...That comes from shareholders, and to a lesser extent, employees.
Meanwhile, Intel stock down $1 today, back to $35....And intel can focus even less on x86, server, and mobile.....
Lol
http://www.marketwatch.com/story/short-seller-citron-scratching-our-heads-at-mobileye-buyout-but-is-moving-on-2017-03-13?siteid=yhoof2&yptr=yahoo
Completely overpriced acquisition...
So each employee cost Intel 30 M $ ? am I the only one who thinks this is insane ?
Between the Altera and Mobileye acquisitions, Intel is around 30 Billion in debt. Gone are the days of being cash positive and building FABS without needing a loan.
RIP Mobileye.
Very questionable acquisition for sure. It makes Qualcomm/NXP deal a great steal. Did BK learn the Math before?!
From their recent SEC filing:
D. Employees
As of December 31, 2016, we employed an aggregate of 663 full-time-equivalent employees, including 473 full-time-equivalent employees engaged in research and development, primarily in Israel, 71 full time-equivalent employees in general management, administration and finance, 90 full time-equivalent employees in sales and marketing and 29 full time-equivalent employees in operations, manufacturing and quality assurance. We also have approximately 1,000 full time-equivalent personnel in quality assurance employed by an exclusive subcontractor in Sri Lanka.
They also intend to grow R&D by 50 employees per year thru 2018.
So, yes, Intel paid $15.3B for a ~500-person team that generated $385M in 2016 revenue.
BK just admitted, of the 100,000 or so employees intel has, virtual none have any relevant abilities/skills/knowhow to design and implement today's AI/Autonomous driving technology...Therefore, it needs to spend an additional $15billion to be in that market.
100,000 employees, and no relevant talent. lol.