Any ideas why price has decreased so dramatically recently?

Yes Skinny there very innovational down at Imagination these days -):

From post 95, I'd say Dil is very 'innovational' about these! :-)

Yeah, strange comment that , maybe he's lost money on them in the past.

I like it.

IMG to buy the mips business and 82 of the 580 patent properties for approx $60m.

the remaining 498 patents to be bought by a consortium (which includes ARM) for approx $350m, which will happen before mips is acquired by img.

so IMG will buy $350m in cash and the mips business for a cost of $60m.

basically MIPS will be carved up to provide some much-needed consolidation in the marketplace and more importantly eliminate the spectre of patent litigation a-la samsung/apple.

plus all the rest of the RNS which can be read in the usual manner

BRIEF-Imagination Tech buys op business of MIPS Technologies06 Nov 2012 - 07:12

LONDON, Nov 6 (Reuters) - Imagination Technologies Group PLC : * Tech.plc - acquisition * Imagination buys mips technologies inc * For a cash consideration of US$60 million * Buys operating business,82 key patent properties and license rights for 498 mips' patent properties * Confident the acquisition will accelerate our growth in the substantial cpu ip market across many segments ((London Equities Newsroom; +44 20 7542 7717)) ((For more news, please click here [IMG.L]))

MIPS Technologies Agrees to Sale of Patent Properties to AST and Acquisition by Imagination Technologies


SUNNYVALE, Calif., Nov. 6, 2012 (GLOBE NEWSWIRE) -- MIPS Technologies, Inc. (Nasdaq:MIPS), a leading provider of industry-standard processor architectures and cores for home entertainment, networking, mobile and embedded applications, today announced it has entered into separate definitive agreements with Bridge Crossing LLC ("Bridge Crossing"), an acquisition vehicle of Allied Security Trust ("AST"), and Imagination Technologies Group plc (LSE:IMG) ("Imagination") with net proceeds of approximately $7.31 per share in cash to each holder of MIPS common stock. The total value of the transaction represents a 40% premium to the closing price on April 11, 2012, the day prior to the first public rumor of a potential sale of MIPS.

Bridge Crossing will acquire 498 of MIPS' total 580 patent assets for gross proceeds of $350 million. MIPS will retain the remaining 82 patent properties that are directly relevant and key to the MIPS architecture, and will also be granted a royalty-free, perpetual license under all of the patent properties sold to Bridge Crossing. MIPS will also provide a restricted license to Bridge Crossing under the 82 retained patent properties. Subject to consummation of the Bridge Crossing transaction, Imagination will acquire the operating business of MIPS, the 82 aforementioned patent properties, and license rights to all of the remaining patent properties of MIPS for $60 million.

Both transactions are subject to customary closing conditions, including the approval of MIPS' shareholders, who will vote separately on each of the transactions. Approval of the Bridge Crossing transaction is not subject to shareholder approval of the Imagination acquisition. The proceeds of the transactions, which are subject to a holdback of approximately $100 million to cover tax and other liabilities, will be distributed to MIPS shareholders on a pro-rata basis through a recapitalization of MIPS common stock.

"After a thorough review of a wide range of alternatives to enhance shareholder value, our Board of Directors concluded that the best alternative for the Company would be the sale of patent properties to a consortium formed by AST, and a sale of the Company to Imagination. Importantly, as part of Imagination, the MIPS architecture will continue to be supported, and protected by MIPS patents. This highly successful outcome builds upon the rich heritage of the MIPS processor architecture, while effectively monetizing the Company's valuable patent portfolio," said Sandeep Vij, CEO of MIPS.

Mr. Vij continued, "By combining the technologies and skills of MIPS and Imagination, a leading multimedia, communications and embedded processor technology company, we believe that we can together create a powerful, well-differentiated and highly influential alternative to existing CPUs in the market. The move is highly strategic and presents clear benefits to MIPS' customers, employees, and partners."

According to Hossein Yassaie, CEO, Imagination Technologies, "The MIPS architecture is widely respected, and is complementary to Imagination's existing CPU capabilities. I believe that this proposed transaction will be welcomed by both companies' customers, including our mutual partners, and by the electronics industry at large. Post deal closure, Imagination will continue to support and expand the MIPS architecture and ecosystem, with the combined effort aiming to create a new industry-leading force in CPU development and licensing."

The sale of the MIPS patent properties has been unanimously approved by the Board of Directors of MIPS and by the CEO of Bridge Crossing, and is subject to customary closing conditions, including the approval of MIPS' shareholders, voting separately from approval of the sale of the Company to Imagination, and not conditioned on the approval or consummation of that sale. The subsequent sale of the Company has been unanimously approved by the Boards of Directors of MIPS and Imagination, and is subject to customary closing conditions, including the separate approval of MIPS' shareholders and consummation of the Bridge Crossing patent property sale. Neither transaction is subject to any financing condition. Bridge Crossing has deposited the full amount of the purchase price into an escrow account to fund the patent property sale transaction. MIPS anticipates that the transactions will close within Q1 CY2013.

J.P. Morgan is acting as exclusive financial advisor; Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor; and Ocean Tomo is acting as intellectual property advisor to MIPS. Fenwick & West LLP and Morrison & Foerster LLC are acting as legal advisors to AST. Jefferies is acting as exclusive financial advisor, and DLA Piper LLP is acting as legal advisor to Imagination.

To read Imagination's press announcement about the proposed acquisition, issued separately today by Imagination, please visit http://www.imgtec.com/corporate/newsdetail.asp?NewsID=700.

http://www.nasdaq.com/article/mips-technologies-agrees-to-sale-of-patent-properties-to-ast-and-acquisition-by-imagination-technol-20121106-00030

UPDATE................

UPDATE 1-Imagination Tech buys MIPS for $60 mln
06 Nov 2012 - 08:59

* Deals secures future of MIPS microprocessor technology * Imagaintion gains operatings business, some key patents * Further 498 patents sold to industry consortium (Adds details) LONDON, Nov 6 (Reuters) - Imagination Technologies has agreed to buy the operating business of MIPS Technologies for $60 million in a deal that secures the microprocessor pioneer's future as a competitor to chips based on ARM's designs. Imagination, a British specialist in graphics and video technology, said on Tuesday it would gain 160 engineers and 82 MIPS patents in the deal. It will also get a license for a further 498 patents that are being sold to a consortium of technology companies, including ARM, for $350 million. MIPS, originally an acronym for Microprocessor without Interlocked Pipeline Stages, was a pioneer of 32-bit and 64-bit processing, and its technology is found in routers, blu-ray players, digital televisions and video games consoles such as the Sony PlayStation 2. It has lost market share in recent years to chips based on the designs of Britain's ARM, but it still shipped more than 700 million MIPS-based chips in the 12 months to end-June. Imagination, which counts both Apple and Intel as shareholders, said the deal would accelerate its growth in the processor IP market. "I believe that the combination of our existing Meta CPU technologies and activities with MIPS' capabilities will help us to create a new force to be reckoned with in the CPU IP market," said chief executive Hossein Yassaie. MIPS said in a statement that shareholders would receive net proceeds of about $7.31 per share in cash after the two deals, which value the company at a 40 percent premium to the closing price on April 11, the day before rumours of a deal emerged. Shares in Imagination were 1.5 percent higher at 471 pence by 0844 GMT. ARM was up 4 percent, the top gainer on the FTSE 100 index < .FTSE>. (Reporting by Paul Sandle; editing by Rhys Jones) ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net)) Keywords: IMAGINATIONTECHNOLOGIES

Analyst presentation up on website

http://www.imgtec.com/corporate/presentations/mips/Imagination_MIPS_Analysts_Presentation.pdf

Jeffries buy , price target 724p

IMG chart showing positive MACD divergence.

07 Nov Imagination... IMG JP Morgan Cazenove Overweight 0.00 474.30 750.00 750.00 Reiterates

750p SP Target.

IMG Imagination Technologies....

JP MORGAN FULL Broker Note......

Imagination Technologies Overweight
IMG.L, IMG LN

Imagination to buy MIPS Tech operating business and
some patents
Price: 465p
Price Target: 750p

European Semiconductors
Sandeep Deshpande AC
(44-20) 7134-5276
sandeep.s.deshpande@jpmorgan.com
Chetan Udeshi, CFA
(44-20) 7742 7034
chetan.x.udeshi@jpmorgan.com

J.P. Morgan Securities plc
YTD 1m 3m 12m
Abs -15.3% -9.7% -8.3% 1.1%
Imagination Technologies Group Plc (IMG.L;IMG LN)
FYE Apr 2011A 2012E 2013E 2014E
Adj. EPS FY (p) 7.33 10.47 13.92 17.89
Revenue FY (£ mn) 98 127 154 185
EBIT FY (£ mn) 24 37 47 61
EBIT margin FY 24.4% 28.8% 30.5% 33.1%
EV/Revenue FY 13.6 10.4 8.6 7.2
EV/EBITDA FY 55.7 36.3 28.3 21.7
Adj P/E FY 63.4 44.4 33.4 26.0
Bloomberg EPS FY (p) 7.70 11.20 13.70 17.80
Source: Company data, Bloomberg, J.P. Morgan estimates.
Company Data
Price (p) 465
Date Of Price 05 Nov 12
Price Target (p) 750
Price Target End Date 30 Apr 13
52-week Range (p) 734 - 392
Mkt Cap (£ mn) 1,224.1
Shares O/S (mn) 263
p
Nov-11 Feb-12 May-12 Aug-12 Nov-12

Price Performance

Imagination Tech is buying the operating business of MIPS, i.e. the licensing
and royalty revenue stream, which generated about US$60m continuing
business in the last fiscal year ended Jun ’12. Purchase price is $60m in cash,
so ~1x previous sales. As part of the purchase, IMG will also acquire 82
patents that are directly relevant to the MIPS architecture. The remaining 480
MIPS patents are being sold to Bridge Crossing LLC for $350m though IMG
will have royalty free use of those patents in perpetuity.
 What is the business? Like IMG and ARM, MIPS is an IP licensing
company licensing processor IP. About $15m of its revenue in the last fiscal
year was licensing revenue and $45m royalty revenue. MIPS royalty units
were 708m in last fiscal ended Jun ’12 and their royalty units have grown at
about 16-17% CAGR between 2007-2012. As part of the acquisition, IMG
gets MIPS design team and 32-bit and 64-bit processor designs.
 How much are they paying and how is it financed? They are paying
$60m for $60m last fiscal revenue stream. They are using cash on their
balance sheet to finance it. Thus buying it at trailing 1x sales. For the recent
quarter ended Sep '12, MIPS reported royalty and licensing revenue of
$13.9m (-19% YoY) with a slight underlying EBIT loss of $0.9m. The
business will come with $100m cash but that will be used to cover tax
payments associated with the disposal of the other patents. Thus,
effectively, it will be cash and debt free. IMG expects the acquisition to be
marginally dilutive to EPS for FY13 and accretive to EPS in 2014. We leave
our forecasts unchanged for now as the deal closes in 1Q13.
 What are synergies? 1) Imagination already has Meta 32-bit processor IP.
With MIPS they get much more battle-tested IP and thus MIPS could
replace Meta in their graphics processors as well. 2) Imagination will likely
reduce G&A at MIPS immediately, as costs of running a listed US company
are removed. There will also likely be sales and marketing cost synergies
and, over the longer term, possibly R&D synergies.
 Why has IMG bought them? MIPS did not gain mobile market traction.
That market is owned by ARM. They have also lost share to ARM in their
core consumer and networking markets. Imagination likely believes that by
being part of the more stable and growing Imagination group, they will be
able to stabilize market share and possibly begin growing MIPS’s licensing
base. MIPS already has 700m+ royalty unit per annum and, if licensees are
confident of future IP development, they will likely re-engage.

IMG IMAGINATION TECHNOLOGY

08 Nov Imagination... IMG Deutsche Bank Hold 479.05 479.00 590.00 590.00 Retains

590p SP Target.

Stan - 06 Nov 2012 07:26 - 101 of 111

Yeah, strange comment that , maybe he's lost money on them in the past.




lol , on the contrary Stan ... started a cracking thread on these over on ADVFN years ago I'll see if I can find it.

For you Stan :-)

IMAGINATION - All The Way Down To 80p ???


Dil 7 Feb'01 - 21:30 edit

Estimates were for EPS of about 3p this year and 4p next. These have now been withdrawn and revised estimates are awaited after the recent profit warning. Assuming that they are downgraded by only 20% then a PE of 25 for next year would equate to a share price of approximatley 80p.

Add to this the fact that the trend was already down and there are no major support levels between the current price of 163.5p and 80p and the case is compelling.

Anything I've overlooked ?

Dil




They actually fell from 163p to around 10p.

In both these stocks but the broker goes hold IMG sell ARM. Anyone have the full note or notes?.

08 Nov Imagination... IMG Deutsche Bank Hold 479.05 479.00 590.00 590.00 Retains
08 Nov ARM Holdings PLC ARM Deutsche Bank Sell 703.00 705.00 400.00 400.00 Retains

Just read half the thread on ADVFN but only the one on the free bb and not the one I started on the pbb.

Made me laff , even Limpy was shorting them. A year after the thread first started a guy called "Dyl" turned up , think Mike and Clem banned "Dil" for a month for having a laff when me and Addo realised that a 1 and an l looked exactly the same in a persons username so we signed up as Bullie , Limpy and everyone else we could think of with l in their username substituting it with a 1 then started a few threads (Dil and Di1 looked exactly the same as did Bullie and Bu1lie , Bul1ie and Bu11ie).

Them were the days :-)

Anyway , sorry for interupting the thread but its just one of those stocks I've never liked.

Should have shorted it again , always was a pile of sh*te.

IMG up over 10% on another good day for some of the Techs.