Intel's &#34;self-rescue&#34; plan may also include selling part of its stake in the autonomous driving system developer Mobileye Global Inc.
On Thursday, September 5th, Eastern Time, Bloomberg cited sources familiar with the matter as saying that Intel is considering various options for selling its stake in Mobileye, which may involve selling on the open market or to third parties, as part of Intel's major strategic reform. Later this month, Mobileye will hold a board meeting in New York to discuss Intel's plans.
Currently, Intel holds 88% of Mobileye's shares. Last year, Intel raised nearly $1.5 billion by selling 35 million shares and 5.25 million share options. If Intel continues to reduce its holdings this year, it should be seen as a fundraising move by Intel to take advantage of the situation. Mobileye, which has been listed in the U.S. for less than two years, has seen its stock price plummet by over 70% this year, shrinking to around $10.2 billion in market cap.
In early August, Mobileye reported weak second-quarter performance, with revenue falling 48% year-on-year to $239 million, net loss of $218 million, failing to narrow from $79 million a year ago, far exceeding analysts' expectations of $52.4 million, diluted EPS loss per share of $0.27, also far exceeding the expected loss of $0.06. At the same time, Mobileye lowered its revenue guidance for the year and adjusted operating profit. Based on its performance in the past two quarters, Mobileye is expected to incur losses for the third consecutive year.
Recently, more than one media outlet has reported on Intel's plans for self-rescue.
At the end of August, some media outlets reported that Intel is seeking urgent assistance from investment bankers to help it through the most difficult period in the company's 56-year history. Intel is discussing various options, including splitting its product design and manufacturing business, cutting back on factory investment projects, and one possible option is to sell or split its wafer foundry business, signaling a major adjustment in Intel CEO Pat Gelsinger's strategy. He once viewed the foundry business as key to restoring Intel's position among chip manufacturers and hoped it would eventually compete with TSMC.
On Monday, Wall Street News mentioned reports that Gelsinger will propose a plan in mid-September to reduce Intel's overall costs and reshape capital expenditures. The plan includes selling off businesses that the company can no longer support, such as the programmable chip division Altera, and may also involve suspending or completely halting its $32 billion factory project in Germany, not yet including splitting Intel and selling its contract manufacturing or foundry business to buyers like TSMC. In addition to these plans, Intel has also hired Morgan Stanley and Goldman Sachs to advise the board on which businesses to sell and which to retain

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Recently, the media reported that Intel's self-rescue plan includes splitting its product design and manufacturing business, such as selling the programmable chip department Altera, and may also sell or split its wafer foundry business

- Intel's "self-rescue" plan may involve selling part of its stake in the autonomous driving system developer Mobileye Global Inc.
- Bloomberg reported that Intel is considering options to sell Mobileye shares, a significant move in its strategic reform, with a board meeting scheduled later this month to discuss Intel's plans.
- Intel currently holds 88% of Mobileye's shares, having raised nearly $1.5 billion last year through stock sales. Mobileye's stock price has dropped over 70% this year, with disappointing quarterly financial results indicating a potential third consecutive year of losses.

Intel's "self-rescue" another move? Considering selling part of its stake in Mobileye