Why activist investor Carl Icahn is taking a big stake in 11-year-old 'big data' company Cloudera

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Activist investor Carl Icahn's latest target is a struggling company specializing in software for processing big data.

"Cloudera is a pure-play single platform company and there's nothing to breakup, so we'd imagine that the compatible areas of Mr. Icahn's historical playbook would be restricted to 1) agitating for a sale, or 2) pushing for big expense reductions to boost cashflows," BTIG analysts led by Edward Parker wrote in a note distributed to clients after the Cloudera stake was disclosed.

"The prospect for the latter's success is complicated by the fact that the stickiness of Cloudera's current revenue stream is currently subject to a high degree of skepticism. Indeed, Cloudera's future largely hinges on the success of the upcoming CDP [Cloudera Data Platform] release, which pivots the company's big data management platform from on-prem towards hybrid and multi-cloud environments.""While the involvement of Mr.

 

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OMFG I thought that was Jacque Fresco for a sec! hahaha I swear it's his doppelganger haha

Cloudera just have a shuthole investor, will be plundered.

hope he's right. I bought when I saw story on cnbc

He probably wants to break it up and sell it off. Cause that’s what he does.

Sell it short! If it’s anything like Transocean (RIG) you’ll lose all your money.

nicholaskalas

Icahn always after big money whether it comes from big data or small data or no data! Why wonder?

He's 83. Why does he care?

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Cloudera agrees to add two representatives of Carl Icahn's investment vehicle to its boardCloudera Inc. said Mnday it has reached a voting and standstill agreement with billionaire investor Carl Icahn, which will see it add two of his directors to its board. Ichan owns 50.3 million Cloudera shares, equal to about 18.4% of its outstanding stock. Cloudera has agreed to add Nicholas Graziano and Jesse Lynn, employees of Icahn's investing vehicle, Icahn Enterprises L.P., to its board with immediate effect. The cloud company will expand its board to 10 members, with the option to make it 11 to add a chief executive, as soon as it has found one. Cloudera shares have fallen 37% on the year following a disastrous revenue forecast in early June, the departure of its chief executive and deep downgrades from analysts. Icahn has agreed to limit his stake in the company to 20% and to abide by standstill agreements and voting commitments. Shares rose 2% premarket on the news. Icahn likes to Pump Penny stocks.
Source: MarketWatch - 🏆 3. / 97 Read more »

Cloudera agrees to add two representatives of Carl Icahn's investment vehicle to its boardCloudera Inc. said Mnday it has reached a voting and standstill agreement with billionaire investor Carl Icahn, which will see it add two of his directors to its board. Ichan owns 50.3 million Cloudera shares, equal to about 18.4% of its outstanding stock. Cloudera has agreed to add Nicholas Graziano and Jesse Lynn, employees of Icahn's investing vehicle, Icahn Enterprises L.P., to its board with immediate effect. The cloud company will expand its board to 10 members, with the option to make it 11 to add a chief executive, as soon as it has found one. Cloudera shares have fallen 37% on the year following a disastrous revenue forecast in early June, the departure of its chief executive and deep downgrades from analysts. Icahn has agreed to limit his stake in the company to 20% and to abide by standstill agreements and voting commitments. Shares rose 2% premarket on the news. Icahn likes to Pump Penny stocks.
Source: MarketWatch - 🏆 3. / 97 Read more »