Ah, the vicissitudes of the world of technology …
One day you are at the top and the next, with the flapping of a butterfly’s wings on the other side of the world, everything falls apart. Let him say Imagination Technologies: the company was, for years on end, Apple’s partner in the development and supply of graphics chips for iGadgets, Apple Watches and Apple TVs and, throughout that period, it enjoyed a financial prosperity that it never had in the rest of its 32 years of existence.
Then, with a swift and deadly blow, Apple announced in April that, within a maximum of two years, it will stop using the British manufacturer’s products and intellectual properties in favor of its own solutions. The result was immediate: Imagination, which had half of its revenue from Apple, saw its shares plummet 70% in the blink of an eye.
In an almost perfect application of the Kübler-Ross Model, the company demonstrated several of the most common stages of human suffering: first, a phase of denial in which it said that Apple could not go on without its properties without infringing several patents; then the anger phase, threatening to sue Apple if the Cupertino company put its plan into action. Then came the negotiation phase, when Imagination said it was starting “a resolution process” with Tim Cook and his gang to discuss the possible pending issues of the breach. The depression phase is left to investors looking at their bank accounts, of course.
Now, the last phase comes: acceptance. According to Reuters, Imagination is finally putting up for sale as a single option to continue operating the way it does today.
Imagination Technologies announces that, over the past few weeks, it has received offers from a number of partners for a potential acquisition of the group as a whole. As a result, Imagination’s board decided to initiate a formal sale process for the group and is involved in preliminary discussions with potential buyers.
It is not yet known exactly who will be the “savior” of the British manufacturer, but it is speculated that, among the interested parties, they are Intel, a Qualcomm, a Mediatek and a number of Chinese companies. Nothing was mentioned about the possibility that Apple itself would take the scorpion out of its pocket and finish off Imagination – which, if we think about it, would be a formidable nonsense considering that this whole situation started precisely because Cupertino dismissed the company saying it wanted to develop its own graphic solutions.
The fact is: with the announcement of the sale, Imagination’s shares rose 21% in a few hours, bringing its market value to £ 425 million. In other words, it is not just a matter of the British being on the right track – at this point in the championship, it is very likely that this is the only way forward.
via Cult of Mac