Mips Computer, Silicon Graphics agree to merge; stock deal of $334 million deemed needed to keep developing new chips

Article Abstract:

Silicon Graphics Inc is merging with ailing Mips Computer Systems Inc in a deal involving an estimated $334 million in stock. Mips shareholders will receive Silicon Graphics stock when the merger is completed in Jun 1992. News of the agreement has caused Silicon Graphics' stock to fall by 18 percent. Mips, which has been showing losses in its quarterly results, has had trouble producing new versions of its integrated circuits, which are crucial to Silicon Graphics workstation products. Silicon Graphics has moved to acquire Mips to keep the chips in production. Although the merger is a defeat for Mips, it places Silicon Graphics in competition with larger workstation vendors since its chip production will now be in-house. Some observers are wary of Silicon Graphics' becoming both a chip architecture and system supplier, so Mips Technologies Inc will be formed as a subsidiary to manage Mips customers and suppliers.

Prepackaged software, Computer peripheral equipment, not elsewhere classified, Computer industry, Integrated circuits, Mergers, acquisitions and divestments, Silicon Graphics Inc., SGI, Logistics, Stock transfer, Stockholder, Financial Analysis Software, Outlook, Stock, Merger

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Mips gives details about new line of computer chips

Article Abstract:

MIPS Computer Systems Inc reveals details about the company's new R4000 computer chip. The R4000 is the first microprocessor actually announced that uses a 64-bit architecture. According to MIPS Pres Robert Miller, design of the R4000 is almost complete and samples should available in Spring 1991. Rumors that Compaq Computer Corp plans to use Mips' R4000 are driving MIPS's stock up 23 percent, to close up $2.50 at $13.375 in over-the-counter trading on Jan 31, 1991. Neither Miller nor a Compaq spokesperson would comment, but at least one analyst believes 'the rumors have become too consistent and broad-based to be ignored any more.'

Semiconductors and related devices, Product development, Microprocessor, CPUs (Central processing units), Compaq Computer Corp., CPQ, Equipment and supplies, Microprocessors, Design and construction, Semiconductor Industry, 64-Bit, MIPS Computer Systems R4000 (Microprocessor)

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