CLDR and HDP merging

You heard it here first (probably):

Cloudera stock jumped 17 percent on Wednesday after it announced an all-stock merger of equals with competitor Hortonworks. The company will hold a conference call to discuss the deal at 5 p.m. Eastern time.

The combined equity value of the two companies is $5.2 billion based on the prices of the companies’ stocks on Wednesday, according to a statement.

“Under the terms of the transaction agreement, Cloudera stockholders will own approximately 60% of the equity of the combined company and Hortonworks stockholders will own approximately 40%,” the statement said. “Hortonworks stockholders will receive 1.305 common shares of Cloudera for each share of Hortonworks stock owned, which is based on the 10-day average exchange ratio of the two companies’ prices through October 1, 2018.”

More at https://www.cnbc.com/2018/10/03/cloudera-and-hortonworks-ann…

Now they can stop pulling against each other in different directions. Probably a win for both, and does change the landscape a little.

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That’s cool. I was getting interested in Cloudera after their incredible comeback. I think they could be a massive force together and combines Hadoop with PAAS in an interesting tie up. Happy to consider holding through the merger.
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I know this deal may not attract anti-trust, but in my view it should. These are 2 of the 3 competitors and only two publicly listed companies. They merging is taking real choices away from the customer. However, we know this deal will go through.

The surviving entity is now strong and they can get to profitability lot faster as their SGA and R&D spend will considerably go down. On any price weakness this is a company you may want to add for long-term.

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I guess it depends on how you define competitors - as in just within Hadoop or vs the entire area it is looking to disrupt.
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Disagree with you Kingran. MapR exists and provides a choice to consumers. So does open source Hadoop, which is the really competition to all of them. It’s under the apache license, which is one of the least restrictive ones possible for re-use. It’s why you can also go to Azure and get Hadoop (or Spark) as a service.

Agree and disagree with you anthonyms. Yes, Hadoop isn’t even a natural monopoly because it has multiple competing technologies. A full and complete monopoly over Hadoop shouldn’t even trigger antitrust.

People here are obsessed with “easy” explanations, so the general point of Hadoop is that it allows you to perform analysis on sets of data that are too large to store on a single computer (whether that’s memory or hard drive). You divide the data across tens/hundreds of nodes, run your analysis on the subset of data on each of them, and then merge the results. I mentioned MapR earlier. It’s name is a play on that process, which is called “map-reduce”. There are other systems and models for doing this. In fact, Google pioneered map-reduce, but no longer using it. So that is where I disagree. Hadoop is not disrupting anything, it is a fading technology and has been for some years. It’s pretty clear to me this merger is defensive.

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Disagree with you Kingran. MapR exists and provides a choice to consumers

I have mentioned there are 3 players and the 3rd viable player is MapR. Hadoop license is open and not restrictive but that doesn’t mean enterprises are going to implement by themselves they still need vendors to do that for them.

I am not sure your assessment of Hadoop is fading is correct. The market is growing at a healthy clip and the move is defensive in that it allows the companies get towards path to profitability.

Compared to few other names I see the successor company of this merger will last longer.

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