Transmeta executives put company up for sale

Low-power processor designer Transmeta is looking for a buyer.

Microprocessor designer Transmeta is looking for a buyer. Executives announced plans to sell the company on Wednesday, saying investment bank Piper Jaffray & Co. will act as its financial advisor during the sale process.

The announcement comes two months after Transmeta reached an agreement with Riley Investment Management, a fund that made an unsolicited offer to buy the low-power processor company for US$15.50 per share earlier this year. Transmeta's stock price closed at US$13.50 on Thursday.

The July agreement between Transmeta and Riley averted a proxy battle for the company. The deal limited Riley to a 13 percent stake in Transmeta and nominated Riley Chairman Bryant Riley to a seat on an expanded Transmeta board.

Transmeta specializes in low-power microprocessor designs and its LongRun and LongRun2 technologies are licensed to several chip makers, including Intel and Nvidia.

As part of the announcement that Transmeta wants to find a buyer, the company released details of a revised licensing agreement with Intel. Under terms of the settlement reached between the two companies last year, Intel was to pay $150 million to Transmeta, followed by five annual payments of $20 million between 2009 and 2013.

That payment schedule has been accelerated, with Intel agreeing to pay a lump sum of US$91.5 million before Sept. 30 in lieu of the five annual payments. Transmeta also agreed to deliver "a copy of certain proprietary Transmeta computing technologies" to Intel with a non-exclusive license to use the technologies commercially.

Details of the technology licensed to Intel were not provided.

Tags transmeta

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?