Sam OliverThe British firm said Friday that Apple subscribed to 2.2 million new shares at £1.4275 per share — the mid market close price on 25 June 2009 — shortly after purchasing another 11.52 million shares on the open market. Combined, the investment of nearly US$5.2 million, brings the iPhone maker's total ownership interest in the company to 9.5%, up from 3.6%.
Apple is a "multi-year, multi-IP, multi-use" licensee of Imagination's current and future portfolio of PowerVR mobile graphics components, including the next generation PowerVR SGX VXD video IP cores.
That agreement is part of a broader, triangular deal orchestrated by the Cupertino-based electronics maker, shortly after acquiring fabless chipmaker PA Semi, that will allow it to internally develop its own next-generation mobile SoCs for future multi-touch handhelds that incorporate Imagination's latest graphics technology and then use Samsung to manufacture the chips.
Earlier this month, AppleInsider was first to report that the new iPhone 3GS achieves its OpenGL ES 2.0 support through the use of the PowerVR SGX graphics processor core, confirming predictions it made as early as April 2008 when news first broke of the secret deal struck between Imagination, Samsung, and Apple.
Apple's move to increase its holdings in Imagination comes just days after Intel over a period of two weeks upped its own stake in the chip designer to just over 16% by gobbling up tens of millions of new shares of its own. Like Apple, Intel is also a licensee of Imaginations technology, which it plans to incorporate into its Atom processor for netbooks and other mobile internet devices (MIDS).
The continued investment in Imagination by both tech heavyweights underscores the chip designer's position as a leader in mobile graphics technology, for which there is no equal. Although both companies have gradually increased their holdings in the UK-based firm, neither has shown signs of entertaining a serious takeover bid for the company, despite recent activity in Imagination's share price that would suggest otherwise.
Marko Zivkovic
Christine McKee
Andrew Orr
Malcolm Owen
Amber Neely
31 Comments
That agreement is part of a broader, triangular deal orchestrated by the Cupertino-based electronics maker, shortly after acquiring fabless chipmaker PA Semi, that will allow it to internally develop its own next-generation mobile SoCs for future multi-touch handhelds that incorporate Imagination's latest graphics technology and then use Samsung to manufacture the chips.
Is this opinion or do you have a source for this statement?
Is this opinion or do you have a source for this statement?
Please see the earlier reports linked into the article. They tell the whole story. We are 99.9% certain. All of our earlier predictions have panned out and we expected, in due time, this will as well.
K
One analyst notes that this increasing ownership by Apple and Intel can cause some concern amongst competitors who also license Imagination Technologies' hardware:
"Too high a stake by Apple or Intel could well cause some existing or potential licensees to think twice about having Imagination's technologies at the core of their roadmaps. We understand that management has already received concerned phone calls from existing licensees."
http://www.guardian.co.uk/business/m.../2009/jun/26/1
Please see the earlier reports linked into the article. They tell the whole story. We are 99.9% certain. All of our earlier predictions have panned out and we expected, in due time, this will as well.
K
This seems such a small investment, for a company the size of Apple & Intel. If they wanted to invest, why not take a larger stake, say 25% and get a seat on the board.
Any explanations?
Edit: I mean Steve Jobs will spend 3 times as much redeveloping Jackling House
This seems such a small investment, for a company the size of Apple & Intel. If they wanted to invest, why not take a larger stake, say 25% and get a seat on the board.
Any explanations?
They may be content as high-level investors and not want to own the company outright, which could also lead to some antitrust matters. But that's just speculation.