It looks like there is a whole lot of speculation but really nothing by any particular company...Is MIPS going to hold around mid $6.50's for the buyout to come for a 30-40% premium and the buyout for $8.50-9.25 area...or will MIPS move higher...Can it fo back down to the $5's...What is your opinion...
AMD just recently purchased SeaMicro for 330M and some change. Sea Micro is a small, 4 year old company with only a handful of employees and 35M in funding.
MIPS has 110M in cash and a plethora of patents that Google, AMD, Intel, MSFT would like to get their hands on. Plus an existing client base that is growing as we see news today. There’s no way MIPS goes for less than twice the price of SeaMicro.
So at 660M that’s $12.45 a share. Given MIPS just secured SICMicro in China, and the potential for at least 2 potential buyers to bid this one up. I think 900M is more realistic. That’s $15.10 a share.
So $12.50 - $15.00 a share. We’re at $6.50 today…do the math..I’m still buying and have been these last few days. There’s a reason MIPS has not said anything related to the rumor that AMD is looking to bid or that they hired GS to find a buyer. There’s something going on and they can’t talk about it right now. Once its finalized..we’ll hear from them and this puppy will fly.
There’s too much smoke to not be “fire”. Here's what we know. I don't think we can paint a clearer picture without spilling the beans.
Last call they said they are going to work to monetize patents. Starboard is putting pressue on MIPS Rumor they hired GS to find buyer Rumor AMD will make a bid Lots of buying Not a word out of MIPS…(something is in the works)