UK’s Imagination Tech up for sale after bruising battle with Apple

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.

Seeing as how Apple (NASDAQ:AAPL) comprised fully half of Imagination Technologies’ (NASDAQOTH:IGNMF) revenue last fiscal year, the Mac maker’s decision to ditch the British company in April easily had the potential to be fatal.

Early on Thursday, shares of Imagination gained around 17 percent in the London stock market to change hands at 142 pence each. That’s not to say that Imagination should have a hard time closing a sale, since it apparently already has interest.

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. Analysts are saying legal battles are quite likely. Ltd. or LG Electronics Inc. Therefore, to play it safe, Imagination Technologies put its MIPS and Ensigma networking businesses up for sale, following the whole company available for purchase. Ltd. could also be logical buyers. Apple hopes to have its chips inside its own products by next year.

A Hertfordshire-based tech firm locked in a licencing row with Apple has put itself up for sale after receiving bid interest.

Apple, which owns a 9.5% stake in Imagination, slashed $625 million from Imagination’s market cap in less than 15 minutes the day it made its announcement, with Imagination’s stock cratering 70%. Imagination’s intellectual property has “formed the basis” of Apple’s iPhones, iPads, iPods, Apple TVs and Apple Watches, the company said in a statement.