Dan Primack Mar 13, 2017
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Intel is buying Mobileye for $15 billion

Intel is making a major move in the self-driving car wars, agreeing to buy Israel's Mobileye for approximately $15 billion. An announcement is expected later this morning.

News of the mega-merger was first reported in The Marker, and has been confirmed to Axios by a source familiar with the situation. Neither company has returned requests for comment.

Update: The news is officially out. Intel will pay $63.54 per share, which represents a fully-diluted equity value of $15.3 billion and an enterprise value of $14.7 billion.

Background: Intel and Mobileye had gotten close in recent months. Last fall, the two companies agreed to a partnership whereby Intel would provide specialized chips to Mobileye's auto collision avoidance system. Then, this past January, the two companies said that they were working with BMW to get 40 autonomous cars on the road in the second half of 2017.

Why it matters: Intel believes that auto is a big part of its future, and bringing Mobileye in-house could help it catch up to rival chipmakers like Qualcomm and Nvidia. It also could aid Intel in the drone space, given Mobileye's focus on collision avoidance. For Mobileye, it's a huge premium (the company was valued at around $10.5 billion at market close Friday) and is vindication after Citron Research started shorting the company in February, saying that it was "a one-trick pony" that was overvalued.

Why repatriate? California-based Intel is expected to use cash "stuck overseas" to finance the purchase.

Data:; Chart: Andrew Witherspoon / Axios

Steve LeVine 14 hours ago
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Self-driving lab head urges freeze after "nightmare" fatality

Uber self-driving car in Pittsburgh. Photo: Jeff Swensen / Getty

Carmakers and technology companies should freeze their race to field autonomous vehicles because "clearly the technology is not where it needs to be," said Raj Rajkumar, head of Carnegie Mellon University's leading self-driving laboratory.

What he said: Speaking a few hours after a self-driven vehicle ran over and killed a pedestrian in Arizona, Rajkumar said, "This isn't like a bug with your phone. People can get killed. Companies need to take a deep breath. The technology is not there yet. We need to keep people in the loop."

Kia Kokalitcheva 2 hours ago
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Why Europeans are more skeptical of data-driven businesses

A European Union flag seen flying in Trafalgar Square. Photo: Brais G Rouco/SOPA Images/LightRocket via Getty Images

Europeans view privacy as a human rights issue, leading regulators there to be much more skeptical of data-driven businesses like social media. Americans are also beginning to worry about how data is used on some platforms like Facebook, particularly after news of the Cambridge Analytica scandal broke this weekend.

The big picture: Europe's history and culture plays a large role in shaping its views toward privacy. Granted, this history has to do with government access to personal information, but it's since extended to businesses.