Autotalks, once seen as one of Israel’s most promising tech companies, was bought by U.S. chipmaker Qualcomm for less than $100 million. This was much lower than expected and far below the $350–400 million value talked about just two years ago.
The deal was announced last week, but it only happened after an earlier attempt to buy the company failed in 2024 because of regulatory issues.
Unlike most deals that are shared with the public when they’re signed, this one was only announced after all approvals were completed and the deal was officially closed. Former Autotalks CEO Hagai Zyss is now listed as a Vice President at Qualcomm, showing that the companies have already started working together.
At first, the deal looked good because all 100 Autotalks employees were offered jobs at Qualcomm, along with signing bonuses.
But, the company’s stock options are now worthless, which is disappointing for employees who hoped to make money from the sale.
Investors who put $150 million into Autotalks also face a significant loss because the final sale price was much lower than expected. This shows how deals can change a lot when there is pressure.
Autotalks’ technology helps cars communicate with each other by sharing information like speed, location, braking, and direction. This helps prevent accidents. Their chips work alongside other sensors and systems to give a more precise and complete view of what’s happening on the road in real time.
Autotalks had promising V2X technology but struggled to make many sales. Qualcomm’s first offer in 2023 was seen as a big success, giving the company recognition and financial benefits.
However, when that deal fell through because of regulatory issues, Autotalks had few options left. People close to the situation say the new deal was more of a rescue than a reward. Qualcomm knew Autotalks was in a tough spot and came back with a much lower offer, which the company’s leaders and investors felt they had to accept.
Qualcomm, which has worked with Apple for a long time but expects that partnership to slow down in the coming years, is looking to expand its range of products. Autotalks’ communication chips fit well with Qualcomm’s new plans, especially as cars are becoming more connected and full of data.
Autotalks was started in Kfar Netter and had big investors like Gemini, Magma, Glenrock, Amiti Ventures, Delek Motors, Samsung Catalyst, Hyundai, Liberty, and Foxconn. But even with support from these big car and chip companies, Autotalks couldn’t avoid problems from the market and regulatory challenges.
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