SGI to sell 6 million MIPS Technology shares

SGI to sell 6 million MIPS Technology shares
Tom Foremski
Silicon Graphics (SGI) is selling 6 million shares of MIPS Technologies as it continues to divest itself completely of its stake in the former subsidiary.
SGI is hoping to use about $207m raised in the offering to help finance its systems business as it continues with its transition away from MIPS based systems to Intel architecture based servers and workstations.
The timing of the move, however, is not good, with Nintendo earlier this week saying it will ditch MIPS based microprocessors in its next generation video games console in favour of a PowerPC architecture chip from IBM. MIPS hopes that the burgeoning set top TV box market will help it obtain some major design wins for its MIPS processors cores.

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