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Imagination Tech, Spurned by Apple, Now Up for Sale

It was believed that Apple is planning to design its own GPU for future Apple devices which led Imagination Technology to start a dispute resolution procedure with the Cupertino giant over licensing payments.Imagination Technologies Group plc (IGNMF) may have lost 70% of its market value after being spurned recently by its biggest customer, Apple Inc.The British graphics chip designer has now formally announced that it is for sale, sending shares up 16% on the London Stock Exchange.”Over the last few weeks, we have received interest from a number of parties for a potential acquisition of the whole group”. (AAPL), but that likely won’t prevent other companies from putting the British chip designer in their sights.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.The management is now in the initial discussion stage with the potential buyers. 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. Apple hopes to have its chips inside its own products by next year.It formed the basis of Graphics Processor Units (GPUs) in Apple’s iPhones, tablets, iPods, TVs and watches.Beyond losing Apple as a customer, the Mac maker had already been actively poaching key executives and engineers from Imagination for months, so Imagination has been losing talent as well.