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Cloudera IPO has stake-limiting provision on Intel

Apr. 01, 2017 4:17 PM ETIntel Corporation (INTC) StockINTC, CLDRBy: Jason Aycock, SA News Editor7 Comments
  • The ownership that Intel (NASDAQ:INTC) has in soon-to-IPO firm Cloudera (CLOUD; CLDR) makes it the biggest stakeholder -- and it has some odd provisions limiting future influence, CNBC notes.
  • The chipmaker made a $740M bet in 2014 that valued the software developer at $4.1B. That has brought Intel to a 22% stake.
  • But an agreement that takes effect with the offering covers the "Intel Maximum Percentage" -- a provision that limits Intel's ability to acquire more than 20% of fully diluted capital stock.
  • An 11M-share offering where Intel doesn't sell any of its stake brings Intel's ownership down to 20%. But another investor buying more than 20% would allow Intel to go higher -- or it could go for a full buyout.
  • Intel hasn't just been a passive investor; it's actively been developing and marketing products with Cloudera.

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