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Cloudera said it had bought back all of Intel’s stake in the software company for $ 314 million, likely causing the chip giant to lose significant paper on its investment.
Alexander Koerner / Getty Images
Wednesday late
Cloudera
said it bought back all of the stake
Intel
acquired the software company for $ 314 million, likely a significant loss of paper for the chip giant on its investment.
Cloudera stock (ticker: CLDR) rose 1.1% in the extended session, adding to a close of $ 15 with a gain of 2.5% in the regular session. Intel (INTC) shares were up 0.1% in non-business hours trading, after finishing the regular session by 0.9% to $ 46.57.
Intel invested $ 742 million a few years ago, in part because the chip giant reportedly wanted a say in the direction of big data software, such as the products Cloudera makes. In Wednesday’s announcement, Cloudera said the buyback would not affect existing business partnerships with Intel and that it paid $ 12.05 each for approximately 26 million shares.
The investment appears to have caused Intel a loss of about $ 400 million, but it is not clear whether Intel bought its stake in hopes of a windfall. When Intel initially bought the stock, it paid double for the Cloudera stock than what another group of investors paid a few weeks earlier. At the time, then led by Brian Kzranich, Intel had reportedly tried to spit out potential Cloudera buyers and scare them off with 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 at the time. The price was more than double the $ 15 share price Cloudera would eventually float on the stock exchange in 2017.
Intel did not immediately respond to a request for comment, but it is possible that the decision to dissolve Cloudera’s stake is part of a plan to divest the company’s non-core assets and acquire smaller companies that are pursuing its efforts. areas such as artificial intelligence.
Earlier this year, Intel sold its memory business to the South Korea-based
SK Hynix
for $ 9 billion. In late 2019, Intel bought Habana Labs, an Israel-based AI chipmaker for $ 2 billion. And in July 2019, Intel said it was selling its smartphone modem business to
Apple
(AAPL). According to a December report, Apple has started building its own cellular modems for its future iPhones.
Write to Max A. Cherney at [email protected]