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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.
Right up until you found out how bad Irix could be ;)...
Very sexy hardware, terrible *nix implementation. I once had (sigh) an IR2 in my office for 6 months. I don't think I slept at home the entire time.
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Or if it is, the Alternative Press, Reuters, and Wall Street Journal are all in on it.
I don't have that many peanuts unfortunately...
"Time was that there was little cooler than an SGI workstation."
My head hurts trying to parse that sentence. Is there some grammatical rule that I don't fully understand or was that just a mistake in the summary?
I kind of understand it to mean -
"There was a time when there was little cooler than an SGI workstation."
Though I could be wrong.
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.'"
Time was that there was little cooler than an SGI workstation.
Time was that there was little cooler than your company having its own Cray machine.
... Wait, I'm sorry, what was the point of this exercise again? To wax nostalgic about the inevitable fall of empires?
Time was that there was little cooler than having the latest Sega game system in your home.
Time was that there was little cooler than to puts around on a BSA motorcycle in front of your friends.
Time was that there was little cooler than to be a citizen of Rome
My work here is dung.
BTW. I hear you can pick up killer SGI MIPS equipment on eBay for a song. These machines are still workhorses for 3D rendering, audio and video production.
These machines suck down the power like motherfuckers by today's standards. You can get more power in a refurb laptop. Mine allegedly costs around $1200 that way and has a Quadro 2700M 512MB with absolutely absurd memory bandwidth... the machine itself has T9400, 2GB exp. to 4GB, 250GB 7200RPM, DVD+/-R/W w/LS, 1680x1050 17", VGA+HDMI, 24bit/96khz audio, super pissed off ricoh SD/etc reader... How much will you pay for electricity in the summer months? I can run my system on one of those harbor freight solar panel setups and a $20 inverter (Thanks for the heads up Lumpy.)
Please, people, I know the love of antique hackery but let those systems die. They aren't going to save you anything in the long run. Speaking as someone who has owned SGI machines, VME suns, an Alphastation, and whole herds of Apollo DN-series and IBM RT-series machines, let them go on to that great goodnight at the recycler. As it is I still have an Indy R4400SC with a marginal power supply (or something) and a camera cluttering up my storage area. Even that thing draws more than my laptop. Food for thought.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
It's definitely not an April Fools joke. But does this really surprise anyone? They're just going the way of DEC and just about every other Unix vendor. The only ones that are still around and thriving are Sun, IBM, and HP. But those too are slowly dying the old Unix death, done in by Linux I suppose.
:-)
When I was younger, I could have only dreamed of having one of these venerable Unix systems. But now that they're finally cheap and I can afford them, Linux now makes them seem very outdated and proprietary in nature. Kind of a sad thing to see old dreams die, but in this case I think it's also a step forward.
It's always seemed like such a shame to see old well-designed machines built around Unix (rather than just generic PC's) become a thing of the past, though. Good quality hardware and a machine that looked and ran like it meant business, with fast disks and lots of RAM...
Systemd: the PulseAudio of init systems
It was obviously going to be all downhill for SGI when they replaced their cool cube logo with the useless text logo....
It doesn't sound like Rackable is paying much for SGI's assets; but, they are picking up SGI's considerable debt, several hundred million dollars, in the deal. So, the up front $25 million cash is only a small part of the total "cost" of the transaction.
There's also the Nvidia effect. All the old SGI engineers who worked on OpenGL and SGI hardware (Mark Kilgard etc al) all ended up working for Nvidia. Around the time of the geforce1, pretty much every single white paper and tech demo that came out of Nvidia was written by an ex-SGI employee. It was only going to be a matter of time before nvidia overtook SGI, and it's another reason why nvidia's openGL support has always been so strong.
It almost broke my heart when during the remodeling I finally decided to put my old Sun workstation out to pasture - literally, into the backyard, to be picked up by trash folks later. It looked at me with that big monitor, "is that what you do to your elders?". A few years back it was my first Pentium, all SCSIed up and nowhere to go. Then it was my first 386, with extra drives hanging on ribbons out of a half-opened case. Before that it was my XT, along with its sharp yellow Casper monitor. I couldn't bear even to look at it. We spent so much time together. The only thing that remains from those days is my VT220 terminal which I used to log in to work through a modem to work remotely.
I never owned an SGI machine, but I knew people who worked there. SGI was in my back yard, so to speak. We were all so proud or "our" companies and "our" valley. There was no cooler place to live on the planet.
I also remember when Computer Literacy Bookstore closed down. I remember looking into the empty space at North First St. I remember when Kim Vestal's "Get your buns out of bed!" did not ring out in the morning.
Our friends leave us every day. Every time the world gets a little grayer. When it's all colorless, it may be time for us to go.
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