MicroVision, Inc. (NASDAQ: MVIS) has been a hot topic among investors for some time now. Ultimately, investors are hoping that a buyout is coming.
If you’ve read my previous articles on the topic, you know that I believe a buyout will indeed take place. Ultimately, the technologies at MicroVision are too important to let go for several companies.
Moreover, in August, White Diamond took a stab at the company, suggesting they had nothing of value. That’s clearly not the case. Nonetheless, in a comment rebutting statements made by White Diamond, Sumit Sharma, CEO at MVIS, said that the company was weighing multiple offers from players in the automotive and augmented reality industries at that time.
Nonetheless, I thought it would be interesting to take a look and see who the most likely potential suitors for an MVIS acquisition would be. Here’s how I see it:
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- Microsoft Is the Number One Suitor
- Ford Takes Number Two
- Tesla Is an Easy Number Three
- Toyota Is Another Great Suitor
- Alphabet Could Be a Buyer
- Final Thoughts
Microsoft Is the Number One Suitor
In my view, there’s no question that Microsoft Corporation (NASDAQ: MSFT) is the most likely suitor for MicroVision. There are several reasons that I believe Microsoft is the most likely suitor for the acquisition of MVIS. Of the most important include:
- Microsoft Is Likely Already Handling Manufacturing. Months ago, MicroVision announced that in order to keep up with demand, one of its larger customers took over some of its manufacturing. While the company didn’t name the company, a press release from the United States government thanked Microsoft for speeding up production.
- Microsoft Needs MicroVision Components. Microsoft is a key player in augmented reality with its HoloLens. MicroVision components are a key technology used in these products.
- Microsoft Hires. Also, over the past several months, Microsoft has hired key players from the MVIS team. This suggests that the company may be preparing for a takeover.
- Autonomous Driving. Finally, Microsoft is a key player in the race to produce feasible autonomous driving technologies. As a result, the company would have quite a bit to gain through an acquisition of MVIS.
Ford Takes Number Two
The second potential suitor for a MicroVision acquisition , and who I believe to be one of the most likely suitors is Ford Motor Company (NYSE: F).
Ford has been a major player in the autonomous driving space, a space where MVIS and its Lidar technology will be overwhelmingly valuable. In fact, Ford announced that it plans on launching its first autonomous vehicle in 2022, which really isn’t too far off.
Moreover, on the first of December, MicroVision announced that it has welcomed Judy Curran to its board of directors. Curran was a long-standing executive member of Ford’s membership team until about two years ago.
Today, as a member of the MVIS Board of Directors, she has a vested interest in helping to make sure a deal gets done. Considering her previous position at Ford, there’s no question that she has friends in Ford’s executive management team. As a result, she may be just what the company needed to bring Ford as one of the top suitors to acquire MVIS stock.
Tesla Is an Easy Number Three
Tesla Inc (NASDAQ: TSLA) is another major player in the autonomous vehicles industry, and a key potential suitor for Microvision.
Most well known for its advanced electric vehicles, Tesla has been a popular topic of conversation for some time now. However, it’s no secret that the company is racing to produce high quality autonomous vehicles as these are likely the vehicles of the future.
So far, there has been no verified connection between Tesla and MicroVision, but that doesn’t mean that there haven’t been clues.
In fact, most recently, a Tesla Model 3 was seen driving around Belgium with what looked to be a lidar system helping to guide the way. Some suggested that Tesla is working on its own lidar system, but it looks strikingly similar to what MVIS is producing.
It’s possible that Tesla is currently testing the lidar system developed by MVIS for feasibility in its vehicles. Should this be the case, the electric car manufacturer would be one of the strongest suitors for an MVIS takeover, especially considering the way Elon Musk likes to spend money.
Toyota Is Another Great Suitor
Next on the list, we have Toyota. The Japanese car manufacturer is no little fish in the big pond that is automobiles. In fact, it is a household name. Moreover, Toyota is also heavily invested in autonomous driving technologies.
Like Tesla, there is no direct connection between Toyota and Microvision. However, there’s a clear indirect connection, and a very good reason for Toyota to acquire MVIS.
In fact, Toyota is currently using Microsoft’s HoloLens 2 in order to expand its vehicle offerings. Of course, MVIS technologies are key components of the HoloLens and likely technologies that Toyota would like to get its hands on.
Alphabet Could Be a Buyer
Finally, MicroVision isn’t just an autonomous vehicles company. Its technologies have been used as crucial components in various augmented and virtual reality applications. That’s where Alphabet Inc (NASDAQ: GOOG) comes in.
Sure, the company is involved in the development of autonomous vehicles, and was one of the first to hop on the autonomous vehicles trend. However, that wouldn’t be the only reason Alphabet would stand to benefit from an acquisition of MVIS.
Not only is the company a key player in autonomous driving technologies, Alphabet is also a key player in augmented and virtual reality technologies.
There is no direct, or indirect, relationship between MVIS and Alphabet to speak of, but when it comes to a suitor with very deep pockets that stands quite a bit to gain from a potential acquisition Alphabet is it.
Many have been wondering if a MicroVision acquisition is going to come to fruition. Unfortunately, I can’t see the future and have no inside knowledge. As such, my views are speculative.
Nonetheless, I couldn’t imagine a scenario under which an acquisition didn’t take place. Looking at the list above, it’s clear that there are massive companies with deep pockets that stand to gain quite a bit from the acquisition of MVIS, should they choose to do so.
All in all, we’re in a waiting game. However, in my view, when the game comes to an end, there are going to be plenty of winners holding MVIS stock.