MIPS (MIPS -2.1%) trades lower after reaching a patent licensing deal with Broadcom (BRCM...

|About: MIPS Technologies, Inc. (MIPS)|By:, SA News Editor

MIPS (MIPS -2.1%) trades lower after reaching a patent licensing deal with Broadcom (BRCM +0.6%). In exchange for $26.5M plus "other consideration," Broadcom obtains a non-exclusive license for the use of MIPS' IP in its products. In addition, Broadcom, which has long used MIPS' CPU cores in its set-top box processors, is taking out a multi-year extension for its license to use MIPS' cores. Activist fund Starboard Value has been pushing MIPS to better monetize its patents.