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."