SGI bankrupt gain, will sell assets for $25 million

Posted on Friday, Apr 03 2009 @ 00:45 CEST by Thomas De Maesschalck
Silicon Graphics (SGI) is seeking bankruptcy protection for the second time in three years, the company has agreed to sell itself for just $25 million to Rackable Systems:
Storied Sunnyvale tech company Silicon Graphics, the onetime multibillion-dollar company that rose to fame in the 1990s by helping Hollywood create blockbusters like "Jurassic Park,'' agreed to sell itself for a mere $25 million Wednesday after seeking bankruptcy protection for the second time in three years.

If the bankruptcy judge approves the sale to Fremont-based Rackable Systems, which makes servers and storage devices for data centers, it might mark the final chapter for SGI, which was founded in 1982 and has taken a painful tailspin into near obscurity in recent years.

Rackable Systems CEO Mark Barrenechea is hopeful. "They are a Silicon Valley icon," he said. "We believe the entire business is of compelling value to Rackable."
More info at Mercury News.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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