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Transmeta surrenders

Things didn’t work out in the long run
Thursday, 25 September 2008, 11:02

THE ENERGIZER BUNNY of x86 computing, Transmeta Corporation, is looking for a kind soul to take on its assets and IP. The pioneer of the Crusoe/Efficeon low power processor hasn’t sorted its financial problems even though it had tried some serious restructuring in 2007 by closing down offices in Taiwan and Japan.

But the economic scenario in 2008 is bleaker still and it’s now surrendered to the inevitable.

In a direct address to investors, Transmeta is inviting potential buyers to contact its financial advisor, in order to sort out the details of the purchase. This is announced together with a freshly-inked deal with Intel Corporation for a ‘perpetual non-exclusive license to all Transmeta patents and patent applications, including any patent rights later acquired by Transmeta, now existing or as may be filed on or before December 31, 2017’. The deal also includes the upfront payment of a previous settlement from December 2007. Instead of paying five easy installments this year, Intel drops the lump sum of $91.5 million for the thing to go away.

In other words, Intel won’t be one of the buyers, no matter what happens to Transmeta. That doesn’t leave a whole lot of options open for Transmeta’s ailing business. Trapped between the CPU giants with their low-power designs, and ARM discretely grabbing whatever low-power devices it can, Transmeta has to sell itself off very very fast indeed.

It’s a staple of pioneers; they either go under or develop some acute business savvy and become the major player in the business. Transmeta’s Crusoe/Efficeon was ahead of its time, no doubt, as today power-efficient computing is being stapled to everything that pushes bits around.

So, any bidders? µ

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Comments
nvidia to the rescue

I doubt AMD is interested or able to buy this.
Apple has already its hands full with semi.
intel well it's clear
VIA has their own stuff...
so who's left?
NVIDIA...
access to energy efficient design maybe add this to their cuda thingy...
access to x86 without actually paying royalties...
I think nvidia will definitely snap this one.

posted by : dacian, 25 September 2008 Complain about this comment
nVidia?

This might just be a godsend for nVidia. They are trying to get into the CPU market and the only thing stopping them is IP. With the Transmeta portfolio they might just become free enough to create an X86 CPU.

posted by : Deimios, 25 September 2008 Complain about this comment
Intel Wins the Intel Way

This is classic. Small hungry company develops better technology than Intel. Intel needs years to catch up. Intel strongarms OEMs and channel not to take technology, or a lot of it. Bribes, threats, and you know what else. Intel develops a technology almost, kind of, sort of, maybe better, at least according to Intel. Small company loses all business and because of the previous Intel strongarms, didn't make a lot of money in the previous years. Small company withers and Intel remains the mob boss. Sound familiar?

posted by : Publin Enemus, 25 September 2008 Complain about this comment
Potential buyer?

Perhaps nVidia will swoop in to get in on the x86 game? As the original Transmeta processors were in-order very long instruction word (VLIW) cores that emulated x86, perhaps nVidia's CUDA efforts could find an expanded use.

posted by : a poster, 25 September 2008 Complain about this comment
NV to the rescue?

NVidia ...

posted by : Reynod, 25 September 2008 Complain about this comment
Intel will pay

Intel has every incentive to monetize the intellectual property at a monopoly price. It can't do that if it falls in someone else's hands and they have to compete to license it. TMTA's tax losses also offer a clear benefit to an aquiring company. 
With Intel (or anyone else's financial backing), TMTA can aggressively go after IP infringers. TSMC, AMD and IBM are potential buyers. Past licensees also have incentive; e.g., NEC's license is only good to 45nm. 
I think we'll see some competition for this company! You guys are good at finding out the "word on the street" so I was expecting more on this story.

posted by : MB, 25 September 2008 Complain about this comment
...

Transvidia?

posted by : Svampodlaren, 25 September 2008 Complain about this comment
Open up! Oops, too late...

We will never know in which position Transmeta would be today if they had opened up access to the internals of their processors, in particular the microcode. But I think the company would be most likely in a much better position. Never mind, Transmeta, put your microcode where no money grows.


posted by : C. P. U., 25 September 2008 Complain about this comment
Transmeta surrenders

Looks to me as if A lot of you guys want all the fabs in the east. Not I . 

INTEL = USA. FAB capacity. Intel is maybe the strongest stratigic weapon the UAS has. 

Clearly we don't want an intel like AMD . It has to be strong. These cips run everthing man . Ya lets do all the fabbing in the east. NO WAY. Intel isn'T a monoply . Its our strengh.

posted by : DYLAN, 26 September 2008 Complain about this comment
AMD?

AMD is already a part owner after buying a stake last year.

L'Inq: http://www.theinquirer.net/gb/inquirer/news/2007/07/06/amd-makes-more-than-strategic-investment-in-transmeta

posted by : Downunder Bob, 26 September 2008 Complain about this comment
IP license worries

Will Transmeta IP agreement with Intel mean any further technology development by Transmeta's future owner can be blatantly copied by Intel? If that's the case, companies like Nvidia will have little interest in Investing on Transmeta.

posted by : Ajay, 26 September 2008 Complain about this comment
No fears

If a company like NV aquires TM and keeps it as a subsidiary then NV gets access to all of TMs patents. Intel only gets access to the new things that TM develops, so as long as TM doesn't develop any new tech of it's own, Nvidia has no worries.

posted by : Mike, 26 September 2008 Complain about this comment
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