Apple Raises Stake in Imagination Technologies to 9.5%

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Imagination Technologies has announced that Apple has raised its stake in the company to 9.5% following recent share purchases. The news comes days after news that Intel has raised their stake in the company to 16%. Imagination Technologies is the company behind the PowerVR graphics chips that are used in the iPhone and iPod Touch.

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."
The PowerVR SGX graphics chip used in the new iPhone is responsible for much of the improved performance seen over the previous model.

Article Link: Apple Raises Stake in Imagination Technologies to 9.5%
 

adamw

macrumors 6502
Sep 22, 2006
292
166
Apple has to protect its interests in the IP of Imagination Technologies. Sounds like they were just upping their share due to Intel's recent raising the amount of its shares.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Apple's being rather careful here.

In fact, they haven't spent a whole lot of their cash reserves. They've been sitting on it for quite a while now.

Why not 95%?
"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."
 

bacaramac

macrumors 65816
Dec 29, 2007
1,414
78
If I had to guess, I would say intel is cashing in on iPhone succsess. Just a thought.
 

DELLsFan

macrumors 6502a
Jan 6, 2009
822
0
9.5% and people are freaking? Um ... get back to me when they buy 50% or the company outright.

Move along now ... nothing to see here. :rolleyes:
 

Zunjine

macrumors 6502a
Jun 26, 2009
715
0
I'd say this is more evidence that Apple intend to enter the gaming market in a big way. I hear they really did come close to buying EA recently.
 

eastercat

macrumors 68040
Mar 3, 2008
3,323
7
PDX
Unless they get special treatment when it comes to ordering chips, I'm not sure about the significance of the story. :confused:
 

iPhoneNYC

macrumors 6502a
Nov 25, 2007
549
0
Apple is sitting on so much cash I'm surprised they're no looking for a bigger stake.
 

lamadude

macrumors 6502
Jan 12, 2006
432
0
Brussels, BE
I don't want apple to buy it up, I like independent innovative companies!
And Imagination technologies were the makers of my first graphics card (back when they were known as VideoLogic) and gave me countless hours of quake II deathmatch fun.
Where is the fun if apple just buys up everything.
 

adbe

macrumors 6502a
Jul 11, 2008
620
141
9.5% and people are freaking? Um ... get back to me when they buy 50% or the company outright.

Move along now ... nothing to see here. :rolleyes:
Intel up their stake in the company, and Apple respond. There probably *is* something to see here.

Forget the company, and just look at Intel and Apple's actions in relation to each other.
 

talkingfuture

macrumors 65816
Dec 4, 2008
1,216
0
The back of beyond.
Must be a good vote of confidence for the company that Apple are buying in rather than just acting as customer. I wonder if they will be working on something to go with the produce of the PA Semi buyout.
 

DELLsFan

macrumors 6502a
Jan 6, 2009
822
0
Intel up their stake in the company, and Apple respond. There probably *is* something to see here.

Forget the company, and just look at Intel and Apple's actions in relation to each other.
::::looks intently:::::

Wow ... that's amazing!

Ok, seriously - aren't there Intel processors in Mac computers now? Aren't both companies making money hand-over-fist? Can't we all just get along? Call me naive, but these companies don't look like rivals. What's Intel going to do? Decide the fate of Imagination Technologies and Apple's iPhone/iPod Touch by upping their stake in this company?
 

wizard

macrumors 68040
May 29, 2003
3,854
571
Apple can't afford to have Intel own Imagination!!!

Title says it all, if Intel ends up owning Imagination innovation goes out the window.



Dave
 

ivladster

macrumors 6502
Jun 29, 2007
476
9
Washington DC
Well if you snooze you loose. Apple always needs to think of its future. Too bad for companies that only ride on Apple's success and copy everything it does.
 

bigwig

macrumors 6502a
Sep 15, 2005
679
0
Doesn't a 10% or greater stake trigger an SEC disclosure? If so I can imagine why Apple only upped their stake to 9.5%.

As to Imagination's other customers, I can't imagine Apple would be disappointed if they stopped using Imagination's product.
 

adbe

macrumors 6502a
Jul 11, 2008
620
141
Can't we all just get along?
I doubt it.

Call me naive, but these companies don't look like rivals.
Not rivals directly, but if Apple makes successful products that showcase a competitor's tech, Intel will logically regard Apple as a problem that needs to be dealt with, even while working closely with them on other products.

What's Intel going to do? Decide the fate of Imagination Technologies and Apple's iPhone/iPod Touch by upping their stake in this company?
Well that's the question. Why did Intel decide to up its stake. It could just be investing in a technology, or it could be moving to buy out a competitor. While I have no idea what Intel are reaching for, my feeling based on their response, is that Apple are at least seeing the move as being potentially hostile.
 

wizard

macrumors 68040
May 29, 2003
3,854
571
Well that is a possibility.

::::looks intently:::::
...........
What's Intel going to do? Decide the fate of Imagination Technologies and Apple's iPhone/iPod Touch by upping their stake in this company?
Well yeah they could do exactly that. Imagination is key to the ARM SoC market, buy them and anybody designing ARM hardware is dealt a big setback. Regulators might or might not step in so in this regard Apples additional interest in Imagination makes perfect sense.


Dave
 

deconstruct60

macrumors G3
Mar 10, 2009
8,897
1,752
Can't we all just get along? Call me naive, but these companies don't look like rivals.
Intel has teams(s) designing CPUs for production and placement in embedded/handhelds.

Apple has team(s) designing CPUs for production and placement in embedded/handhelds.

Is there 100% overlap in their businesses? No. Is there 0% overlap in their businesses? No.

That doesn't mean they can't still be partners in other aspects of the business ( e.g., Apple Microsoft OS biz vs. MS Office for Mac OS
< until recently> , High end HP hardware/OS vs. low end HP hardware/Windows , etc. ). Once tech companies expand out into a broader sprectrum of efforts there is lots of these overlaps. )


What's Intel going to do? Decide the fate of Imagination Technologies and Apple's iPhone/iPod Touch by upping their stake in this company?
How about this scenario.... Intel takes Imagination tech and couples it to an Intel CPU/GPU combo. That's only package they'll sell: a combo of CPU/GPU. So Apple's investment in eventually building their own CPU (which would be coupled to a IMG product) is worth more or less at that point? Intel has never used packaging to help squeeze another player out of the market? *cough* Nvidia.

Besides this can just be a move to get paid on the part of both parties. If Imagination Tech is very successful over the next 2-3 years the stock price could go substantially higher. At that point Apple ( and perhaps Intel ) sell off at a profit ( or the company gets bought out at a high price and they get paid. ) A fraction of both companies multibillion cash equivalents are invested in stocks. All of it isn't stuffed into grandma safe T-bills.



If you look at a three year chart of IMG back in 2007 the stock was higher than it is now. ( iPod halo to some extent. What think a iPod + Palm (Pre + others) halo might look like 2-3 years from now? ). Similarly, IMG can't do a large stock buy back to boost the share price. In some since Apple just did it for them. If that makes IMG a healthier company to deliver significantly better product reliably in the future it pays off. (If Apple says "go do R&D" in this direction... they are going to say 'no' now? )


At 9.5% Apple could press for a rep on the board if they want. That way would get slightly better than normal investor head's up on any buyouts maneuvering. Also have a head start of figuring out if higher counter offer is worth paying for.

Apple doesn't need to buy IMG right now. Nvidia might get dramatically cheaper between now and time they might need to. Right now it is probably best kept independent (from Apple's perspective). This move will help assure that.
 
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