Responding to the news that 50% of its business was disappearing, shares of Imagination Technologies lost nearly 70% of its value on that fateful April day.
Imagination announced on Thursday, June 22, that it had put itself up for sale, just two months after Apple said it would stop using the chip company's graphics technology by 2019.
However, following Imagination's declaration that it would be up for sale, shares rebounded a healthy 21 per cent. The stock has tumbled 38.1% since April 3, when Apple decided that it would end its relationship with Imagination.
"Imagination Technologies announces that over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group", the company said.
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Movements above 70 are interpreted as indicating overbought conditions; conversely moves underneath 30 notify oversold conditions. Zooming in closer, company stock has been -1.92% for the quarter, 3.43% over the past month, and -0.39% over the past week.
However, there's considerable uncertainty regarding the value of Imagination's IP at this point, as well as who might now be interested in it.
Established in 1985, Imagination Technologies could now see a variety of potential buyers, including other chipmaking giants such as Intel and Qualcomm. Analysts are saying legal battles are quite likely. Ltd. or LG Electronics Inc. Apple, too, could reconsider its earlier decision to dump the company and submit a bid. Chinese companies are also being mentioned.
Imagination is now embroiled in a dispute with Apple, its largest customer, over licensing payments.
The CC team advising Imagination is being led out of London by M&A partner Lee Coney, with support from M&A partner Katherine Moir, intellectual property and dispute resolution partners Vanessa Marsland and Iain Roxborough and competition partners Jenine Hulsmann and Timothy Cornell. Initially, after Apple announced its split from the British chip designing company, its shares fell more than 35 percent.
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