Imagination studios put itself on sale in June 2016 after a very bizarre feud with Silicon Valley mega corporation, Apple. The UK based company had found themselves in unsavoury waters after Apple had announced that it would stop using Imagination studios graphics technology. Apple, in a statement say they now needed new and differentiating IP for their products. Poaching of employees followed as Apple tried to lure top Imagination employees over. Things only turned out worse for Imagination studios with apple deciding to locate their new UK headquaters in the same locality as Imagination studios. The feud with Apple caused a 70 percent drop in share prices as well. But in a recent turn of events, it seems that all hope may not be lost for the UK based firm. Although in some unfamiliar territory, the firm has been able to generate interest in its services. With lots of companies showing interest, the most remarkable bid in this case has come from a not so unlikely source: a Chinese equity fund.
Canyon Bridge; likely hope of saving Imagination Studios revived after Apple divorce.
Chinese backed buyout?
Canyon Bridge Capital Ventures is a private equity firm that provides capital needed by technology companies to grow and develop. The Chinese giants recently acquired Lattice semiconductor for an estimated $1.3 billion and seems to be on a mission to improve on their portfolio.
“We are investors who provide capital, deep technology and business smarts that is driven by an entrepreneurial spirit that is designed to help companies innovate and grow” is how the company is described on their website.
News of the bid first surfaced last week with multiple reports of interest by the Chinese government backed fund hitting the internet but with no official statement by either Imagination Studios or Canyon Bridge Capital Ventures, it is difficult to tell the exact terms or stage of negotiation.
Hope for the future for Imagination Studios.
Imagination studios have been experiencing something of a revival since the announcement of a sale. Profit turnover has been very high as costs were cut down and prices of shares steadily climbed back up. The company has reported a profit of 2.4 million pounds which was an improvement from almost 30 million pound loss of the previous year with a revenue of over 140 million pound according to a recent company statement.
Truly, the patient dog eat the fattest bone – how interesting this story span out! Canyon Bridge has proven truly to be a game changer in the global private equity buyout market as stated on its website – it is time to cash in on the investment!