Imagination won't kill MIPS

Junko Yoshida, EETimes
11/6/2012 5:57 PM EST

NEW YORK – Things could hardly turned out better for MIPS Technologies in the latest patent acquisition deal in which ARM and Imagination Technologies are carving up the company.

MIPS CEO Sandeep Vij insisted Tuesday (Nov. 6) after word of the deal broke that it was “done in the best interest of our industry partners, shareholders and employees.”

Indeed, the transaction “returns over three times the book value per share [of MIPS] and more than the current market capitalization value of $380 million,” said J. Scott Gardner, a senior analyst at The Linley Group. It appears that MIPS employees are OK for now since Imagination said it plans to retain most of its current MIPS workforce of about 160 employees.