said it had bought the whole staff back
took in the software company for $ 314 million, which probably ordered a significant paper loss for the chip giant on its investment.
The Cloudera (ticker: CLDR) stock advanced 1.1% in the extended session, adding a $ 15 close with a 2.5% gain in the regular session. Intel (INTC) stock rose 0.1% in after-hours trading after closing the regular session by 0.9% to $ 46.57.
Intel invested $ 742 million several years ago, in part because the chip giant reportedly wanted a post in the direction of big data software, such as the products Cloudera manufactures. In Wednesday’s announcement, Cloudera said the buyback would not affect existing business partnerships with Intel and that it paid $ 12.05 apiece for approximately 26 million shares.
The investment appears to have generated a loss of around $ 400 million for Intel, but it is not clear that Intel bought its stake in hopes of a storm. When Intel originally bought the stock, it paid twice as much for the Cloudera shares than what another group of investors paid a few weeks before. At the time, Intel, led by Brian Kzranich, was aiming to eliminate potential Cloudera buyers and intimidate them with a $ 4.1 billion valuation.
Intel paid $ 30.92 for 11.99 million shares, which cost the company approx. 5% of its cash and short-term investments at that time. The price was more than double the $ 15 stock price Cloudera would eventually go public in 2017.
Intel did not immediately respond to a request for comment, but it is possible that the decision to liquidate the Cloudera share is part of a plan to lay off the company’s non-core assets and acquire smaller companies that will strengthen its efforts in areas such as artificial intelligence.
Earlier this year, Intel sold its memory company to South Korea-based
for $ 9 billion. In late 2019, Intel acquired Habana Labs, an Israeli-based AI chip maker for $ 2 billion. And in July 2019, Intel said it was selling its smartphone modem business to
(AAPL). Apple has reportedly begun building its own mobile modems for its future iPhones, according to a December report.
Write to Max A. Cherney at [email protected]