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Rackable Buying SGI Assets For $25M?
UnanimousCoward was one of many people to submit a story that might be an April Fools day joke, except that I don't think it is. Rackable Systems has announced that it is buying SGI for the bargain basement price of $25M. Time was that there was little cooler than an SGI workstation. And note to Rackable's PR: Either this was a genius joke, or a terrible day to announce huge news. Someone either deserves a promotion or a firing.
a story that might be an April Fools day joke
Hey I myself enjoy taking a joke too far but if this is an April Fool's Day joke, I must confess I would have jumped out and yelled "surprise" before filing a merger and acquisition notice with the Security and Exchange Commission of the United States Government. I hear they don't take too kindly to joke 8-Ks.
From the SEC Filing:
On April 1, 2009, Rackable Systems, Inc. ("Rackable"), a Delaware corporation, announced that it had signed an Asset Purchase Agreement (the "Agreement") to acquire substantially all the assets of Silicon Graphics, Inc., a Delaware corporation ("SGI"), including SGI's non-U.S. subsidiaries and operations, other than certain assets unrelated to the ongoing business. The Agreement, dated March 31, 2009, was made and entered into by and among Rackable, SGI and certain SGI subsidiaries. The Agreement has been approved by the respective boards of directors of Rackable and SGI.
Under the terms of the Agreement, Rackable or a subsidiary of Rackable, will acquire the assets for a purchase price of approximately $25 million in cash, $10 million of which will be placed in escrow and available to Rackable following the closing to reimburse Rackable for payments and expenses made or incurred in connection with certain tax matters. In addition, Rackable will assume certain liabilities associated with the acquired assets. Following the signing of the Agreement, SGI and certain of its affiliated entities located in the U.S. filed a voluntary Chapter 11 bankruptcy petition and motions to approve the Agreement.
Also note that they had planned to repurchase up to $40 million worth of shares but it looks like instead they're opting to acquire SGI. What that means to you day traders and quant fund managers, who knows?
And note to Rackable's PR: Either this was a genius joke, or a terrible day to announce huge news. Someone either deserves a promotion or a firing.
The world doesn't screech to a halt because a bunch of nerds are slapping their knees and pulling pranks; here's evidence someone got something done yesterday.
My work here is dung.
Not that I didn't preview or anything, but I could have also linked in the SGI customer letter. Rackable is getting SGI without getting their debt.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
The nix part was ok, IIRC it was the god awful GUI implementation that really let it down. The hardware was awesome for apps like Maya/Softimage etc, however you had to learn ways of working that avoided the GUI entirely. Oh, and re-installing irix was as simple as constructing an atomic bomb in your garden shed, from 2 paperclips, some woodglue, and a dead panda, whilst your arms are tied behind your back. Actually. Now i think about it. You're right, .... irix was shit.
Even now, Maya still has some legacy hangovers from those days: Ctrl+Space to remove the GUI. Ctrl+M to remove the menus. Space to bring up the 'hotbox', which is basically a menu rendered using openGL (about the only thing Sgi's could do really well).
Even now, I'm still staggered by how far Sgi managed to fall from grace. Mind you, i think Apple learnt a lot from SGI about how to switch to Intel processors successfully. The way SGI did it made every single one of their existing clients run to the hills, and they never looked back.