Pirelli & C. SpA’s board of directors has formally rejected a proposal from its largest shareholder to separate the company’s Cyber Tyre digital tire monitoring and analytics division. The decision marks a pivotal moment in Pirelli’s strategic direction amid growing investor interest in tech-focused automotive ventures.
- Board of Pirelli & C. SpA rejected a spin-off proposal for the Cyber Tyre division on February 5, 2026.
- Cyber Tyre generated €142 million in 2025 revenue, or 6.8% of Pirelli’s automotive segment.
- The unit employs 340 staff across four R&D centers and serves 12 major OEMs.
- Estimated standalone valuation of Cyber Tyre exceeds €1.2 billion.
- Pirelli projects 18% CAGR for Cyber Tyre segment through 2030.
- Stock declined 1.3% following the announcement, indicating market reaction.
The board’s rejection came during a formal meeting held on February 5, 2026, confirming earlier reports that a major shareholder had advocated for the spin-off of Pirelli’s Cyber Tyre unit. The unit, which includes sensor-integrated tire systems, data analytics platforms, and predictive maintenance software, has been a focus of innovation efforts since its formal integration into Pirelli’s R&D portfolio in 2023. Despite generating €142 million in revenue during the 2025 fiscal year—representing 6.8% of Pirelli’s total automotive segment sales—the board concluded that maintaining full ownership aligns better with long-term integration goals. The decision reflects broader concerns within Pirelli’s leadership about preserving control over intellectual property and digital infrastructure critical to future mobility solutions. The Cyber Tyre division currently employs 340 personnel across four European R&D centers and has partnered with 12 OEMs, including Fiat Chrysler and BMW, for embedded telematics systems. Analysts note that the unit’s standalone valuation could exceed €1.2 billion based on comparable tech spin-offs in the automotive sector, but the board emphasized that internal synergies with Pirelli’s premium tire manufacturing and sustainability initiatives outweighed potential short-term gains. The move is expected to influence investor sentiment, particularly among institutional shareholders who have shown increasing interest in divesting non-core assets. Pirelli’s stock dipped 1.3% in early trading on February 6 after the announcement, reflecting market uncertainty about the company’s future capital allocation. However, senior executives reiterated confidence in the integrated model, citing a projected 18% compound annual growth rate for the Cyber Tyre segment through 2030, driven by increasing demand for connected vehicle technologies.