Imagination Technologies sells to China-backed equity firm for 550M pounds

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Comments

  • Reply 21 of 34
    I don't recall Apple making any "unsubstantiated assertions". I recall a business announcement that they were taking it in-house (something like that) and left it at that. I recall Imagination making public their shocked reaction even though they have known that both parties have discussed this decision back in 2015(?). Understandably they were upset, but management should have planned ahead for situations like this before it happens. No company should place all their eggs in one basket. Samsung knows this and they know they shouldn't rely on Apple to depend on their LED and OLED screens. And Apple knows they can't rely on just Samsung for their screens and chips, so they have been diversifying their sources. They're both far-sighted and agressive competitors. Perhaps Imagination should've followed their example.

    "Imagination has made excellent progress both operationally and financially over the last 18 months until Apple's unsubstantiated assertions and the subsequent dispute forced us to change course," said Imagination Technologies CEO Andrew Heath. "The acquisition will ensure that Imagination — with its strong growth prospects — remains an independent IP licensing business, based in the UK, but operating around the world."


    pscooter63watto_cobra
  • Reply 22 of 34
    Sold to a Chinese company. Expect to see last year's Apple tech in next year's Android tech.
    watto_cobra
  • Reply 23 of 34
    I wouldn't call Imagination dead yet.  It's likely to end up in 75%+ of the mobile devices sold in China.  It will probably end up in their Windows and Linux machines also. Graphics (math) cores for super computers are also a possibility...

    I don't know what will happen to foreign employees, but the IP (tech) will live on.  

    The price for the company is cheep...


    watto_cobra
  • Reply 24 of 34
    According to a report from the Financial Times, the Canyon Bridge deal is valued at about 550 million pounds ($742 million) and is contingent on the completion of a separate sale involving MIPS, Imagination's U.S. unit.
    Who’s predicting a IP lawsuit about 1 week after the sale closes? My guess, they’ll ask for $742 million in damages.
    edited September 2017
  • Reply 25 of 34
    It is too bad we will never get the hardware ray tracing features Imagination was working on in its Wizard processors. However you can't argue with success and Apple has been extremely successful with its A series CPUs. Apple can move faster now it has both the CPU and GPU chip design in house.
  • Reply 26 of 34
    tzeshantzeshan Posts: 1,966member
    Imagination GPU is no longer top of the line.  Apple is in the fiercely competitive smartphone business.  Apple did the best decision. 
  • Reply 27 of 34
    vision33r said:
    This is what happens when you become an Apply supplier and give all you've got to them.  Samsung didn't just became an Apple supplier they became a competitor in order to be around in case Apple doesn't need them anymore.

    Really? Samsung was an Apple supplier first, and then a competitor? So, the giant corporation that sells literally everything from ships to consumer electronics got into phones so that it could protect itself from Apple who eventually tries to become less reliant on suppliers?

    Well, Samsung better get cracking: Funny that Samsung's unit that supplies Apple is more profitable that it's mobile division that uses a lot of its own components to actually build phones -- The same mobile unit that indeed seems to produces pretty much the majority of ALL phone handsets in the world.

    Perhaps Samsung should get down to business and come up with a profitable flagship that actually sells in some volume and makes them some money, instead of exploding in their customers' hands.

    edited September 2017 watto_cobraanton zuykov
  • Reply 28 of 34
    wood1208wood1208 Posts: 1,958member
    Apple said it will stop using imagination tech in two years might refered to previous iPhones/iPads/etc which used imagination GPU tech still being manufactured and sold. IPhone 8 might be one that uses Apple's own GPU tech.
    edited September 2017 ronn
  • Reply 29 of 34
    icoco3icoco3 Posts: 1,459member
    blastdoor said:
    ...

    I work for a company where 90% of our business comes from one customer (sort of). I strongly suspect our management has absolutely no plan whatsoever for what to do if we lose that customer. I suspect we’ll be dead as a door nail. But it doesn’t have to be that way. 
    Hope you have a plan....
    watto_cobra
  • Reply 30 of 34
    frac said:
    "...Apple's unsubstantiated assertions and the subsequent dispute..."
    Well Apple just proved their assertion that they would and could build their own in-house graphics solution. Now it's up to Imagination to prove it's assertion that it still uses their IP.  And they could still fail the Canyon Bridge 'contingency' MIPS sale condition. I cant imagine Canyon Bridge wanting to start their ownership with an expensive court battle over IP.
    Unless Canyon Bridge can see bigger $$$$ signs coming from Apple as a result of the court case than they spent buying Imagination?

  • Reply 31 of 34
    Apple tried to buy them several years ago and said no. Was there any speculation how much the offer was to buy the company?

    Biggest mistake of their life and now they are dead.
    watto_cobra
  • Reply 32 of 34
    jbdragonjbdragon Posts: 2,115member
    realistic said:
    This is what typically happens when a business allows itself to become too dependent on sales to just one company.
    This goes for any type of business.  Where I work in the food industry.  We deal with Costco which is huge, and could be the only company some businesses deal with.  That's not smart.  So they're only a small part of business we supply to.  Costco has their own rules and audits for a business to deal with also.  It's Costco and so you deal with it.  Imagination should have been looking for other sources to supply to.  Not rely on most of their income from Apple.  The writing was on the wall for years!!!. As soon as Apple started their own CPU with the A4.  They've been doing other custom chips since then.  Anyone with half a brain knew that at some point Apple would start work on their own GPU also.   They should have been relying more from other company's at this point.  So no one company would hurt them to much that they couldn't recover from. Apple moved surprisingly fast and Imagination just stood there and let it happen to them.  
  • Reply 33 of 34
    vision33r said:
    This is what happens when you become an Apply supplier and give all you've got to them.  Samsung didn't just became an Apple supplier they became a competitor in order to be around in case Apple doesn't need them anymore.
    That did not happen because Apple was their client. It happened, because ImgTech got relaxed in thinking they got it right and could ride that dollar horse forever without innovating. Apple probably did not like what they heard/saw in the meeting room and decided to part ways.

    Also, are you saying that Apple should just continue supporting a company they have no need in? What for?
    There is no "tenure" status for any Apple supplier. That is to say, if you the best, then they do business with you. You stop being the best, they stop doing business with you.

    Welcome to the real/business world.
    edited September 2017
  • Reply 34 of 34
    blastdoor said:
    This was a failure of management at Imagination. 

    It was not a mistake to be a supplier to Apple. It was profitable for Imagination while it lasted. 

    The mistake was to apparently have no plan B if they lost Apple as a customer. 

    I work for a company where 90% of our business comes from one customer (sort of). I strongly suspect our management has absolutely no plan whatsoever for what to do if we lose that customer. I suspect we’ll be dead as a door nail. But it doesn’t have to be that way. 
    I work for a company that did something similar with 2 large Oil Companies, 99% of our business came from them before the price-per-barrel plummeted and all orders stopped. LUCKILY we quickly managed to diversify into other areas to keep the company ticking over but it was really poor management to put all our eggs in 1 basket. The oil&gas side of things is picking up again now and I don't think any lessons have been learned to be honest. I'm just waiting for an opportunity to leave.
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