By Milana Vinn (Reuters) -Enterprise artificial intelligence software provider C3 AI is exploring a potential sale, among other options, after founder Thomas Siebel recently stepped down as CEO over health concerns, according to three people familiar with the matter. THE DETAILS * The sales process is in its early stages and other optionsare on the […]
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Exclusive-C3 AI weighs sale after founder-CEO Siebel steps aside, sources say
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By Milana Vinn
(Reuters) -Enterprise artificial intelligence software provider C3 AI is exploring a potential sale, among other options, after founder Thomas Siebel recently stepped down as CEO over health concerns, according to three people familiar with the matter.
THE DETAILS
* The sales process is in its early stages and other optionsare on the table, including raising funds from privateinvestors, said the people, who asked not to be named to discussconfidential matters. * Redwood City, California-based C3 provides a platform forcustomers like Shell and the U.S. Air Force to develop andoperate large-scale artificial intelligence applications. * Its AI tools are used across the U.S. government as wellas the energy and manufacturing sectors, making it a smallerrival to Palantir Technologies. * C3 AI did not immediately respond to a request forcomment.
THE NUMBERS
* C3 has a market value of about $2.15 billion. * C3 AI’s stock has fallen more than 54% year-to-date amidworsening financial performance and uncertainty over itsstrategy and leadership. * The company reported a net loss of $116.8 million, or 86cents per share, for its fiscal first quarter ended July 31. * Revenue fell 19% to $70.3 million from $87.2 millionduring the same quarter a year ago. * C3 AI also withdrew its full-year financial outlook whenit reported earnings on September 3, which it attributed to theCEO change and a restructuring of its sales and servicesoperations.
THE PEOPLE
* Salesforce veteran Stephen Ehikian succeeded Siebel as CEOon September 1. * Siebel, who had transitioned to executive chairman inJuly, said he had an autoimmune disease that caused “significantvisual impairment.” * Siebel is best known for founding Siebel Systems, which hesold to Oracle in 2005 for $5.85 billion. * The company’s board includes former U.S. Secretary ofState Condoleezza Rice, Fortune CEO Alan Murray, and BruceSewell, Apple’s former general counsel and secretary, amongother prominent figures in finance and technology.
(Reporting by Milana Vinn in New York, additional reporting by Stephen Nellis in San Francisco; Editing by Dawn Kopecki and Richard Chang)