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Apple Making Moves to Acquire Longtime Graphics Chip Partner Imagination Technologies (Update: Nope)

Apple Making Moves to Acquire Longtime Graphics Chip Partner Imagination Technologies (Update: Nope)

Apple is reportedly in talks to buy longtime graphics chip partner Imagination Technologies, the creator of the PowerVR graphics technology used in every A-Series chips since the debut of the iPhone 4.

Apple Making Moves to Acquire Longtime Graphics Chip Partner Imagination Technologies

AppleInsider:

Imagination refused to deny the possibility of a takeover, according to Ars Technica. A source for the website indicated that the two companies are in “advanced talks,” but didn’t elaborate on details.

By grabbing Imagination, Apple would have complete control over the designs of its mobile graphics processors, allowing them to optimize future chips for its own devices. Such control would bode well for graphics performance of future versions of the iPhone and iPad, as well as any other devices, such as the Apple Watch.

Imagination is facing a perilous financial future at the moment, with an expected operating loss to be posted for its current fiscal year, which ends in April. The company is reported to be taking drastic cost-cutting measures, closing down some of its businesses, and laying off hundreds of workers.

Apple could be looking to take advantage of Imagination’s problems, hoping to get the company for a song. However, rumors of such a deal briefly pushed Imagination share prices up, making it a bit more expensive for anyone interested in acquiring the company. Apple currently owns at least a 9.5% piece of Imagination.

UPDATE: Apple has issued a an official statement regarding this report:

“From time to time, Apple talks with companies about potential acquisitions. We had some discussions with Imagination, but we do not plan to make an offer for the company at this time.”

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