Seeking Alpha

MIPS gained 6.2% on the day after activist investor Starboard Value, whose co-founder was named...

MIPS gained 6.2% on the day after activist investor Starboard Value, whose co-founder was named Chairman of OPWV today, sent MIPS a letter declaring a 9.1% stake, nominating 4 board members, and urging the company to conduct share buybacks and "explore alternatives" for its intellectual property. (previously)
Comments (3)
  • catamount
    , contributor
    Comments (374) | Send Message
     
    Two big MIPS licensees: (BRCM) and (NETL)

     

    You figure it out.
    12 Sep 2011, 05:16 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (806) | Send Message
     
    MIPS shot higher right after the Starboard PR came out. It was close to flat on the day before that:

     

    finance.yahoo.com/q?s=...
    12 Sep 2011, 05:19 PM Reply Like
  • Chartreux
    , contributor
    Comments (10) | Send Message
     
    MIPS having BRCM and NETL as licensees is hardly helping them, there revenues have gone done each of their last 4 quarters.

     

    It seems that the buzz is surrounding the "exploring alternatives" for its intellectual property, which I assume means using it's patent portfolio to start suing people. I don't think anyone would be interested in buying MIPS for its patent portfolio, Intel and ARM don't need the technology or the patent protection.

     

    MIPS has little resources to defend itself against counter suits if it goes down the litigation path, which means that if they choose this path then they would have to abandon developing products and become a full blow litigation house like Rambus. Might work out, but then again it might reduce the value of the company to 0.

     

    It's probably a good time to be an IP lawyer about now.
    13 Sep 2011, 12:46 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|