Imagination risks regulatory inquiry
- Autor:Ella Cai
- Solte em:2017-07-10
Imagination risks action from investors and regulators after Apple revealed that it told Imagination in 2015 that it was going to drop Imagination’s GPUs in favour of in-house designed Apple GPUs.
“We began working with Imagination in 2007 and stopped accepting new IP from them in 2015,” says Apple, “after lengthy discussions we advised them on February 9, 2017, that we expected to wind down our licensing agreement since we need unique and differentiating IP for our products.
Imagination says that it received notice from Apple that it was winding down its licensing agreement in late March 2017.
Imagination says that it did not release the news until April because Apple’s notification “lacked clarity.”
Regulators might take the view that Imagination failed to disclose material information to shareholders.
The prospect of regulatory inquiry hanging over the company could depress its sale price and Apple is thought to be a possible purchaser.
Apple has rented 22,500 sq ft of office space in St Albans a few miles away from Imagination’s HQ in King’s Langley and continues to hire Imagination’s people.
Imagination did not make the news public until April 2017 when Imagination’s shares fell 70%, business units were put up for sale and, eventually, the whole company was put on the market.
“We began working with Imagination in 2007 and stopped accepting new IP from them in 2015,” says Apple, “after lengthy discussions we advised them on February 9, 2017, that we expected to wind down our licensing agreement since we need unique and differentiating IP for our products.
Imagination says that it received notice from Apple that it was winding down its licensing agreement in late March 2017.
Imagination says that it did not release the news until April because Apple’s notification “lacked clarity.”
Regulators might take the view that Imagination failed to disclose material information to shareholders.
The prospect of regulatory inquiry hanging over the company could depress its sale price and Apple is thought to be a possible purchaser.
Apple has rented 22,500 sq ft of office space in St Albans a few miles away from Imagination’s HQ in King’s Langley and continues to hire Imagination’s people.
