Apple in talks to take over long-time graphics chip partner Imagination Technologies

Posted:
in General Discussion edited March 2016
Apple is negotiating to buy Imagination Technologies, the British firm responsible for the PowerVR graphics technology used in every Apple A-series chip since the original iPad and the iPhone 4, a report claimed on Tuesday.




Imagination refused to deny the possibility of a takeover, according to Ars Technica. A source for the website indicated that the two companies are in "advanced talks," but didn't elaborate on details.

Apple may be hoping to take advantage of Imagination's rocky financial situation. The latter is expecting to post an operating loss for the year to the end of April, and is taking radical measures to reduce costs, including shuttering some of its businesses and putting hundreds of people out of work.

That could lower Imagination's value enough to make a takeover worthwhile, although rumors of the deal have briefly pushed shares (and hence market cap) higher. Through investments, Apple already owns at least a 9.5 percent stake in Imagination.

Buying the firm would allow Apple to exercise complete control over mobile processor design, optimizing graphics for the company's specific demands. That could be useful not just for improving iPhone and iPad performance, but future ventures into wearables, including any stabs at augmented or virtual reality.

Comments

  • Reply 1 of 17
    josujosu Posts: 217member
    So, yes, it was Apple, and the products that uses its technology, the iPhone and the iPad responsible for the cost cutting and restructuring of the firm, but in a totally different way that last week article presented the issue. And a clear reason why the PowerVR unit is getting a boost.
    edited March 2016
  • Reply 2 of 17
    mejsricmejsric Posts: 152member
    What they are waiting for? Sell it.
  • Reply 3 of 17
    tmaytmay Posts: 6,362member
    Ars Technica noted that Intel is a partner as well. Adds some frenemy issues, but likely Apple and Intel will figure it out. 
    edited March 2016 wizard69jbdragon
  • Reply 4 of 17
    ppietrappietra Posts: 288member
    tmay said:
    Ars Technica noted that Intel is a partner as well. Adds some frenemy issues, but likely Apple and Intel will figure it out. 
    I think Intel reduced that partnership considerably in the last year. Intel is no longer a shareholder
  • Reply 5 of 17
    Go Apple!

    Buy Imagination Technologies.

    Buy BMW - it's cheap.
  • Reply 6 of 17
    Buying could be part of a verticallization strategy that Apple has been pursuing to control its core technologies, or it could be a merely defensive in nature (to stabilize the firm and prevent precipitous brain drain.)
    tmayjbdragon
  • Reply 7 of 17
    saareksaarek Posts: 1,530member
    Makes complete sense, look at what they have managed to do with their own CPU's. It can only get better if they build their own GPU's in concert with the CPU's.
    pmzradarthekatjbdragon
  • Reply 8 of 17
    wood1208wood1208 Posts: 2,917member
    Apple needs in-house CPU,GPU,Modem(Wifi,Cellular),battery design to control it's destiny. Other areas like display, chip fabrication, camera, Apple can buy from multiple suppliers at reasonable pricing. Intel lining up with AMD on graphics.
    edited March 2016
  • Reply 9 of 17
    brakkenbrakken Posts: 687member
    Another nail in ss's coffin. No more Mali graphics for you! But what will all the other lame-graphics purchasers do?
    Go for it, Apple! (But wait until it's even cheaper! ;)
  • Reply 10 of 17
    It's a rumour, from Ars Technica ! 

    I'd love it as I'm a shareholder but if true a news release needs to be made in short time or the directors are in the sh!t for effectively sitting on insider information not available to all of the market. 

    Intel are are no longer shareholders and wrote PowerVR out of their roadmap last year so no issue there. 

    Imagination also have great IP in camera, communications and CPU as well as graphics and video that Apple already license so would be a wonderful buy at $1.5bn (my wishful thinking valuation !) which is less than half what Google paid for a thermostat ha ha. 
    jbdragon
  • Reply 11 of 17
    bsimpsenbsimpsen Posts: 399member
    brakken said:
    Another nail in ss's coffin. No more Mali graphics for you! But what will all the other lame-graphics purchasers do?
    Go for it, Apple! (But wait until it's even cheaper! ;)
    Mali belongs to ARM, not IT.
  • Reply 12 of 17
    brakken said:
    Another nail in ss's coffin. No more Mali graphics for you! But what will all the other lame-graphics purchasers do?
    Go for it, Apple! (But wait until it's even cheaper! ;)
    Why would that stop Samsung using Mali GPUs ? They're from ARM. 
  • Reply 13 of 17
    freerangefreerange Posts: 1,597member
    hammerd2 said:
    It's a rumour, from Ars Technica ! 

    I'd love it as I'm a shareholder but if true a news release needs to be made in short time or the directors are in the sh!t for effectively sitting on insider information not available to all of the market. 

    Intel are are no longer shareholders and wrote PowerVR out of their roadmap last year so no issue there. 

    Imagination also have great IP in camera, communications and CPU as well as graphics and video that Apple already license so would be a wonderful buy at $1.5bn (my wishful thinking valuation !) which is less than half what Google paid for a thermostat ha ha. 
    WRONG! Directors are under no obligation to release any information. M&A transactions are typically done with complete secrecy. Especially when Apple is involved!!!!
    edited March 2016
  • Reply 14 of 17
    schlackschlack Posts: 721member
    great buy for apple. although as i understand it...many other customers use these chips, so they company would take an even further hit to profitability if it had to drop all its customers but apple.
  • Reply 15 of 17
    quinneyquinney Posts: 2,528member
    That rumor site named after a Dolly Parton movie has reported that Apple denies this.
  • Reply 16 of 17
    wizard69wizard69 Posts: 13,377member
    Buying could be part of a verticallization strategy that Apple has been pursuing to control its core technologies, or it could be a merely defensive in nature (to stabilize the firm and prevent precipitous brain drain.)
    It could be lots of things.    Access to the IP though is very important.    We must not forget the companies Apple has purchased in the past that stopped delivery of products to old customers.  If Apple looses access to the GPU tech then they are screwed when it comes to more advanced A series processors.  
  • Reply 17 of 17
    freerange said:
    hammerd2 said:
    It's a rumour, from Ars Technica ! 

    I'd love it as I'm a shareholder but if true a news release needs to be made in short time or the directors are in the sh!t for effectively sitting on insider information not available to all of the market. 

    Intel are are no longer shareholders and wrote PowerVR out of their roadmap last year so no issue there. 

    Imagination also have great IP in camera, communications and CPU as well as graphics and video that Apple already license so would be a wonderful buy at $1.5bn (my wishful thinking valuation !) which is less than half what Google paid for a thermostat ha ha. 
    WRONG! Directors are under no obligation to release any information. M&A transactions are typically done with complete secrecy. Especially when Apple is involved!!!!
    No I was RIGHT you silly billy. They are under no obligation to do so until someone blabs it all over the internet and the share price goes up 20% on the back of it ! At which point the takeover panel asks them if there is any truth to the matter (as the cat is out of the bag).

    The only time then that the directors don't have to say anything is if there is no truth to the rumour. 

    Hence why I said "if true news release needs to be made" - note "if true".
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