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Lattice to buy SiliconBlue for $62 million

12/9/2011 05:58 PM EST
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goafrit
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re: Lattice to buy SiliconBlue for $62 million
goafrit   12/11/2011 7:48:55 AM
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And they got behind the money. It is interesting they were raising money though they did not think they could exist.

Tsantes
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re: Lattice to buy SiliconBlue for $62 million
Tsantes   12/11/2011 1:03:47 AM
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For the full story, as one said during Watergate: Follow the money.

Tsantes
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re: Lattice to buy SiliconBlue for $62 million
Tsantes   12/11/2011 1:02:17 AM
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Not sure those options are worth much unless the VCs took a beating.

Patk0317
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re: Lattice to buy SiliconBlue for $62 million
Patk0317   12/10/2011 3:24:31 PM
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This looks like a good deal for Lattice. Other than the product, SB has a lot of great FPGA veterans on staff. I agree with the comment that the math doesn't appear to work out for the VCs, but I do not think we know the full story here.

fpgaace
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re: Lattice to buy SiliconBlue for $62 million
fpgaace   12/10/2011 12:45:36 PM
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SB had two fundamental issues, 1) being a startup, and 2) socket life. Lattice solved #1 but in doing so inherited the socket life issue. SB's niche FPGA business survives mainly on getting designed in (ie., socket wins) to high-volume products such as cell phones. Because cell phones have a short life cycle there's frequent opportunity for a device to get designed out. SB's FPGAs are typically targeted for a 'design out' because the functionality they provide usually gets pulled into a custom chip. In other words, SB FPGAs are a good temporary solution to time-to-market. Once their investers started to understand the nature of the beast I suppose Lattice started looking like an extension to writing on the wall, and good exit strategy for execs with stock options.

mcgrathdylan
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re: Lattice to buy SiliconBlue for $62 million
mcgrathdylan   12/10/2011 3:42:57 AM
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Good point. I had forgotten that that was the total. In view of this, an interesting transaction. Perhaps SiliconBlue simply believed they had reached the limits of what they could accomplish as a small, independent startup.

Tsantes
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re: Lattice to buy SiliconBlue for $62 million
Tsantes   12/10/2011 1:29:02 AM
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Raising even more questions, I just read in EET that Silicon Blue raised (in June) a total of $73.8M with its series D.

Tsantes
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re: Lattice to buy SiliconBlue for $62 million
Tsantes   12/10/2011 1:08:26 AM
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Perhaps someone more skilled than me in such matters as this can explain how the VCs allowed this to happen. Do the math: someone is going to get disappointed, either the VCs or the staff, considering the offer is not even $5M more than the funding according to my math.

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