Intel Steers Into Self-Driving Traffic

Intel's expensive splurge at the car dealership makes sense, but it's also clear that hype for the next generation of automotive technology is getting out of hand.

Intel Corp. said Monday it will acquire Mobileye NV, an Israeli company whose technology helps self-driving cars "see" their surroundings, for $15.3 billion. Intel can afford the acquisition with its cash on hand, but it's still a pricey roll of the dice. After subtracting Mobileye's net cash, the transaction is valued at $14.7 billion, which works out to about 118 times its trailing 12-month Ebitda. That ranks as one of the most expensive acquisitions by a tech company since the dotcom bubble days.