CHIP DESIGNER MIPS Technologies is looking for a buyer and has hired investment bank Goldman Sachs to hawk it around to potential purchasers.
MIPS Technologies owns the MIPS architecture, a chip architecture that has been taught at universities for many years, but the firm has failed to capitalise on its grass-roots support, falling behind in the lucrative smartphone and tablet markets. Now MIPS Technologies has hired Goldman Sachs to find a buyer, with a number of its licensees mooted as being possible buyers.
According to MIPS, the firm counts Broadcom, Texas Instruments, Toshiba, Sony and Qualcomm as licensees of its chip architecture. While the firm has a number of big names licensing its products, the problem is that most are using ARM's technology for big value processor designs.
According to Bloomberg's sources ARM is not interested in MIPS, and it's not particularly hard to see why. ARM is doing well enough without having to take on the burden of another processor architecture that has traditionally been a rival to its own designs.
MIPS Technology's share price values the company at $350m and the firm has many patents aside from its architecture that could be of value, especially to companies that are looking to expand their patent portfolios to protect against patent infringement claims. µ