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Cloudera said it bought back all the stakes Intel had taken for the software company for $ 314 million, probably reserving a substantial paper loss for the chip giant on its investment.
Alexander Koerner / Getty Images
Late Wednesday
Cloudera
he said he redeemed all the stakes
Intel
took the software company for $ 314 million, probably reserving a substantial paper loss for the chip giant on its investment.
Cloudera shares (ticker: CLDR) advanced 1.1% in the extended session, adding a $ 15 close with a 2.5% gain in the regular session. Intel (INTC) shares rose 0.1% after trading hours after closing the regular session by 0.9% to $ 46.57.
Intel invested $ 742 million a few years ago, in part because the chip giant wanted to have a say in big data software, such as Cloudera’s products. In Wednesday’s announcement, Cloudera said the buyout will not affect existing business partnerships with Intel and that it is paying $ 12.05 a piece for about 26 million shares.
The investment appears to have caused a loss of about $ 400 million for Intel, but it is not clear that Intel bought its stake in the hope of a misfortune. When Intel originally bought the share, it paid twice as much for Cloudera shares as it did for another group of investors just a few weeks earlier. At the time, then under the leadership of Brian Kzranich, Intel would have sought to eliminate potential Cloudera buyers, hoping for a valuation of $ 4.1 billion.
Intel paid $ 30.92 for 11.99 million shares, which cost the company about 5% of its cash and short-term investments. The price was more than double the price of the $ 15 share that Cloudera will make public in 2017.
Intel did not immediately respond to a request for comment, but the decision to roll out the Cloudera package may be part of a plan to eliminate the company’s non-core assets and acquire smaller businesses that will support their efforts in the areas. like the artificial. intelligence.
Earlier this year, Intel sold its memory business to South Korea
SK Hynix
for $ 9 billion. In late 2019, Intel bought Habana Labs, an Israeli chip maker based in Israel, for $ 2 billion. And in July 2019, Intel said it was selling its smartphone modem business
Apple
(LPAA). According to a December report, Apple has begun building its own cellular modems for its future iPhone.
Write to Max A. Cherney at [email protected]