Investing in step with the times: Intel Capital plans to sell assets of $ 1 billion and invest in advanced technologies

Sources: barrons.com



Intel investment unit plans to focus on the most promising areas of development. To reduce costs, the company can get rid of non-essential assets. True, the topic was raised in the middle of 2015, at the initiative of Brian Krzanich, who in May 2013 replaced Paul Otellini as CEO of Intel. However, the matter did not go further.



Now we are talking about selling a small share of Intel's assets in the amount of $ 1 billion, reports The Wall Street Journal, citing its own sources.

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Under the leadership of Otellini, Intel Capital was one of the most active venture capital investors in the world. Since 1991, Intel Capital has invested more than $ 11.64 billion in 1,440 companies in 57 countries.



In recent years, the market structure has changed dramatically: mobile devices have become more popular than traditional PCs, cloud computing, corporate systems, information security tools, data centers, and the Internet of Things are playing an increasing role.



The sale of secondary assets would allow Intel to reallocate funds and more actively develop business in the most important regions for the corporation, including the United States and China.



In 2014, Cloudera's big data processing system received $ 740 million from Intel Capital. The total investment funds amounted to $ 900 million, while the share of Intel in Cloudera rose to 18%. Thanks to Intel, the company has become the leader of the Hadoop ecosystem. After the transaction, the development of Intel's own Hadoop product was discontinued.



In August 2015, Intel was at the head of a consortium of investors who invested $ 100 million in Mirantis . The company sells cloud storage services based on open technology OpenStack. For the first time, the venture division of Intel invested in Mirantis in 2013.



Intel, whose processors are used in most modern servers, traditionally seeks to cooperate with software developers. As a result of this collaboration, products are created that then help increase the sales of technology from Intel itself.



In July 2015, the corporation announced its intention to invest in a number of companies as part of the Cloud for All initiative. It is supposed that this will help corporate data centers to become equal in efficiency with cloud services like Amazon Web Services ( AWS ) and Microsoft Azure .



In the same year, Intel hired experts from UBS to analyze the prospects for selling a number of assets in India, but then there was no result. In the leadership of Intel Capital were serious personnel changes, and the deal was considered untimely. The company left the president of this unit Arvind Sodhani. His place was taken by Wendell Brooks. Sodhani has worked for the company for 35 years, Bloomberg writes .



In February, the new president of the corporation Wendell Brooks reported that Intel intends to continue to invest annually at $ 300–500 million in startups “across the whole range of technology areas where Intel’s positions are strong”.



Against the background of the news about the possible sale of Intel stock quotes rose by $ 0.51 and reached $ 31.76.