MobilEye Stock Drops After Report That Intel Might Sell Some Of Its Stake
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Key TakeawaysIntel is reportedly considering selling off some of its stake in MobilEye, which was recently near 90%.A Bloomberg report said Intel might offload some of its stake in a public sale or third-party transaction.Both MobilEye and Intel have struggled lately, with shares tumbling this year.
Shares of MobilEye Global (MBLY) slumped Friday after reports that Intel (INTC) is considering selling off some of its stake as part of the chipmaker's effort to improve its financial position.Bloomberg quoted people familiar with the matter as indicating Intel could offload some of its holdings in a public sale or third-party transaction. Intel has about an 88% stake in MobilEye, according to a recent regulatory filing.Shares of MobilEye were recently down more than 6%, while Intel's were off 3%.A MobilEye spokesperson said the company would have no comment on the report. Intel did not immediately respond to a request for comment.MobilEye, which provides hardware and software for self-driving vehicles, has been struggling as automakers cut back production to clear out their post-pandemic inventory glut. Shares have plunged this year, with today’s losses sending them to record lows.Intel shares have also been sinking. Recent reports have indicated CEO Pat Gelsinger and other executives are looking at options including shedding assets. The stock is trading around its lowest level in more than a decade.UPDATE: This story has been updated to reflect new share-price information and to correct the spelling of Pat Gelsinger's surname.
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