Apple in talks to take over long-time graphics chip partner Imagination Technologies
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.
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
Buy Imagination Technologies.
Buy BMW - it's cheap.
Go for it, Apple! (But wait until it's even cheaper!
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.
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".