AMD makes more than strategic investment in Transmeta

TRANSMETA JUST ANNOUNCED that AMD has invested $7.5 million in the company in exchange for TMTA stock.

We have checked the stock price of Transmeta, which stood at $0.70 at time of writing. With AMD's investment being $7.5 million and the fact that the value of transaction yielded in AMD taking five and one quarter million stocks, it does not take a wizard to calculate what is actually happening.

AMD is still a way off from owning Transmeta, a company that has a market cap of $139 million, but this is a very significant investment.

One of the reasons for this transaction could be that Transmeta sued Intel last year and Transmeta helped AMD in development of HyperTransport and getting x86-64 (known as AMD64) out of the door. The second reason could be continuation of their licensing deals, since AMD licensed Efficeon for FlexGO, and this deal could include some technologies involved with LongRun2, Transmeta IP.

Did AMD just pull Nvidia's trick from the hat and start to acquire Transmeta? One thing is clear - this is major and has more than one consequence. µ

See Also
Transmeta sues Intel over patents
Nvidia could buy Transmeta