I've been looking through Imagination Technologies' financial reports for recent years. Not pretty. There are reasons why its stock has spent most of the last 2 years trading between $1.50 and $3.00 after having peaked above $8 five years ago (using current exchange rates for those numbers).
It's been doing some major restructuring, but I have doubts whether that was going to be enough. And with this announcement regarding Apple's business, I have significant doubts whether the company can survive in its current form.
I can understand why some employees, beyond those who have been let go, might have been (or might still be) looking to jump ship. I can also understand why Apple - even if it wasn't otherwise looking to move on from being a major customer of Imagination Technologies, which it may well have been looking to do anyway - might be worried about continuing to rely on it.
Apple is not the only technology company that has owned a significant stake in Imagination Technologies. Intel used to own 15% of it, but it appears that Intel got rid of most (or all) of its stake a couple of years ago.
I'm far from an expert on his company, I don't follow it and only his morning bothered to look through its financials. But my guess is that, after its announcement regarding the notice Apple gave it, the only thing holding the stock price where it is is speculation that it might soon be bought by someone - and mostly for its IP.
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Wow... what a development. $2.5 billion down to $750 million in a matter of hours. I hope they packed fresh undies this morning.
Its market cap was already under $1 billion. So it was more like from $900 million or so down to $300 million or so in a matter of hours.