Feeds

Angry investor offers to buy Transmeta

We can whip it into shape

Choosing a cloud hosting partner with confidence

Cash-starved chip designer Transmeta has received an unsolicited buyout offer from its largest, and very irate, shareholder.

Banking firm Riley Investments wants to pay $15.50 a share in cash to transform the troubled company into a full-fledged patent squatting joint. The firm aims to kill most of the company's predicted annual $20m in operating expenses and better monetize its intellectual property.

Riley, which owns about seven per cent of Transmeta, has demanded a change in the company's board via a "shareholder's derivative action" lawsuit filed last December. The investment firm accused Transmeta of gross mismanagement, waste of corporate assets, and abuse of control after the company favorably settled patent litigation with Intel.

In its complaint, Riley said that Transmeta's general counsel, John Horsley, was paid "an outrageous, illegal and unconscionable bonus of over $10 million simply for doing his job and settling an intellectual property lawsuit against Intel ten months after it was filed, and likely settling for less money than was reasonable due to the incentive to settle".

The firm also said Transmeta awarded $12m to its CEO Lester Crudele and CFO Sujan Jain in cash bonuses related to the Intel lawsuit, in which, it claims, they played no material part. Riley is also angry about stock options totaling 725,000 being granted to various executives in December, causing dilution of over five per cent of the company's value to existing investors.

Riley said it will withdraw the proposal if it doesn't receive a response by February 8. Transmeta said it is considering the offer.

Transmeta was once known as an underdog in the low-power microprocessor game. However, through a combination of its own fumbling and Intel's...persuasive business tactics, Transmeta failed to generate any major sales. The company has since switched to developing semiconductor technology for other companies. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.