Pixelworks CEO Publishes Letter to Shareholders
Pixelworks (NASDAQ: PXLW) announced that its Board unanimously recommends shareholder approval to sell its majority-owned China subsidiary, Pixelworks Shanghai, to a VeriSilicon-led special-purpose entity for an equity value of RMB 950 million (≈USD 133 million). After agreed share transfers, transaction costs and withholding taxes, Pixelworks expects to receive net cash proceeds of approximately USD 50–60 million on closing.
The company says the sale would let Pixelworks focus on a margin-enhanced, capital-light technology licensing business built around its TrueCut Motion™ cinematic visualization platform, strengthen financial flexibility, and reallocate capital to licensing growth. The transaction remains subject to customary closing conditions and a shareholder vote of at least 67% of outstanding common stock.
Pixelworks (NASDAQ: PXLW) ha annunciato che il suo Consiglio, all'unanimità, raccomanda l'approvazione da parte degli azionisti per vendere la sua controllata in Cina, Pixelworks Shanghai, a una struttura a scopo speciale guidata da VeriSilicon, per un valore azionario di RMB 950 milioni (≈USD 133 milioni). Dopo le trasferimenti azionari concordati, i costi della transazione e le ritenute, Pixelworks prevede di ricevere proventi netti in contanti di circa USD 50–60 milioni al closing.
L'azienda afferma che la vendita permetterebbe a Pixelworks di concentrarsi su un'attività di licensing tecnologico a margine elevato e a basso capitale, basata sulla sua piattaforma di visualizzazione cinematografica TrueCut Motion™, rafforzare la flessibilità finanziaria e riallocare capitale alla crescita del licensing. La transazione resta soggetta a condizioni di chiusura abituali e a una votazione degli azionisti di almeno il 67% delle azioni ordinarie in circolazione.
Pixelworks (NASDAQ: PXLW) anunció que su Junta Directiva, por unanimidad, recomienda la aprobación de los accionistas para vender su filial en China de mayoría, Pixelworks Shanghai, a una entidad de propósito especial liderada por VeriSilicon, por un valor de capital de RMB 950 millones (aprox. USD 133 millones). Después de transferencias de acciones acordadas, costos de transacción e impuestos retenidos, Pixelworks espera recibir procedentes netos en efectivo de aproximadamente USD 50–60 millones al cierre.
La compañía dice que la venta permitiría a Pixelworks centrarse en un negocio de licencias tecnológicas de margen alto y con capital ligero, basado en su plataforma de visualización cinematográfica TrueCut Motion™, fortalecer la flexibilidad financiera y reasignar capital al crecimiento de licencias. La transacción sigue sujeta a condiciones de cierre habituales y a una votación de los accionistas de al menos el 67% de las acciones ordinarias en circulación.
Pixelworks (NASDAQ: PXLW) 이사회는 합의된 주식 양도, 거래 비용 및 원천징수세를 제외한 순 현금 매수대금은 종료 시점에 약 USD 50–60백만의 순현금을 받을 것으로 Pixelworks는 기대한다.
회사 측은 이 매각으로 Pixelworks가 TrueCut Motion™ 시네마틱 시각화 플랫폼을 중심으로 수익성 높은 자본절감형 라이선스 사업에 집중하고, 재무적 유연성을 강화하며 라이선스 성장에 자본을 재배치할 수 있을 것이라고 한다. 거래는 일반적인 종가 조건 및 발행 주식의 67% 이상에 대한 주주 투표를 조건으로 남아 있다.
Pixelworks (NASDAQ: PXLW) a annoncé que son conseil d'administration recommande à l'unanimité l'approbation des actionnaires pour vendre sa filiale chinoise majoritaire, Pixelworks Shanghai, à une entité d'utilité spéciale dirigée par VeriSilicon pour une valeur en actions de RMB 950 millions (≈ USD 133 millions). Après les transferts d'actions convenus, les frais de transaction et les taxes à prélever, Pixelworks s'attend à recevoir des produits nets en espèces d'environ 50–60 millions USD à la clôture.
La société indique que la vente permettrait à Pixelworks de se concentrer sur une activité de licensing technologique à marge élevée et à faible intensité de capital, basée sur sa plateforme de visualisation cinématographique TrueCut Motion™, de renforcer sa flexibilité financière et de réaffecter du capital à la croissance du licensing. La transaction reste soumise à des conditions de clôture habituelles et à un vote des actionnaires d'au moins 67 % des actions ordinaires en circulation.
Pixelworks (NASDAQ: PXLW) gab bekannt, dass sein Vorstand einstimmig empfiehlt, die Zustimmung der Aktionäre zum Verkauf der Mehrheitsniederlassung in China, Pixelworks Shanghai, an eine VeriSilicon-geführte Zweckgesellschaft für einen Eigenkapitalwert von RMB 950 Millionen (ca. USD 133 Millionen) zu genehmigen. Nach vereinbarten Aktienübertragungen, Transaktionskosten und Quellensteuern erwartet Pixelworks Netto-Cash-Proceeds von ca. USD 50–60 Millionen bei Closing.
Das Unternehmen sagt, der Verkauf würde Pixelworks ermöglichen, sich auf ein margenstarkes, kapitalarmes Lizenzierungsgeschäft zu konzentrieren, das um seine Filmvisualisierungsplattform TrueCut Motion™ herum aufgebaut ist, die finanzielle Flexibilität zu stärken und Kapital in das Lizenzwachstum umzuschichten. Die Transaktion bleibt vorbehaltlich üblicher Abschlussbedingungen und einer Aktienversammlung von mindestens 67% der ausstehenden Stammaktien.
Pixelworks (NASDAQ: PXLW) أعلنت أن مجلس ادارتها يوصي بالإجماع بموافقة المساهمين على بيع فرعها في الصين المملوك في الغالب، Pixelworks Shanghai, إلى كيان غاية خاصة يقوده VeriSilicon مقابل قيمة أسهم قدرها 950 مليون يوان صيني (حوالي 133 مليون دولار أمريكي). بعد نقل الأسهم المتفق عليها وتكاليف الصفقة والضرائب المحتجزة، تتوقع Pixelworks أن تتلقى عوائد نقدية صافية تبلغ نحو 50–60 مليون دولار أمريكي عند الإغلاق.
تقول الشركة إن البيع سيمكن Pixelworks من التركيز على أعمال الترخيص التكنولوجي عالية الهامش والعمليّة قليلة رأس المال المبنيّة حول منصتها للمشاهدة السينمائية TrueCut Motion™، وتعزيز المرونة المالية، وإعادة تخصيص رأس المال لنمو الترخيص. والصفقة لا تزال خاضعة لشروط الإغلاق المعتادة و< b>تصويت المساهمين بنسبة 67% على الأقل من الأسهم العادية القائمة.
- Equity value of Pixelworks Shanghai: RMB 950 million (≈USD 133 million)
- Expected net proceeds to Pixelworks: approximately USD 50–60 million
- Board recommendation: unanimous FOR the sale
- Strategic shift to an asset-light technology licensing model focused on TrueCut Motion
- Sale is subject to customary closing conditions and requires ≥67% shareholder approval
- Net proceeds are substantially below headline equity value after taxes and costs (USD 50–60M vs USD 133M)
- Company will exit majority ownership of its China manufacturing and design subsidiary, reducing in‑house China capabilities
Insights
Sale of majority-owned Pixelworks Shanghai for RMB 950 million (≈USD 133 million) is a material strategic divestiture that will shift Pixelworks to a pure-play licensing model.
Pixelworks will sell its majority stake in Pixelworks Shanghai for an equity value of
The business effect is straightforward: divestiture converts an ownership interest in a China-based fabless semiconductor subsidiary into near-term liquidity and removes ongoing capital and management demands tied to that unit. The company states it will redeploy attention and capital into a margin-enhanced, asset-light technology licensing model centered on the TrueCut Motion™ platform and cinematic visualization solutions.
Key dependencies and risks are explicitly disclosed: satisfaction of closing conditions, receipt of the expected net proceeds, and shareholder approval at the special meeting. The announced net proceeds range is material to the balance sheet but materially lower than the headline equity value, so timing and final cash received matter for liquidity planning and capital allocation decisions.
Concrete items to monitor include the shareholder vote outcome at the upcoming special meeting, any updates on closing conditions or changes to the expected net proceeds, and the company’s subsequent disclosure of how the
Dear Fellow Shareholders,
I am reaching out to you today about an important strategic transaction that you will be considering at our upcoming special meeting of shareholders. The Board of Directors of Pixelworks, Inc. ("Pixelworks"), has unanimously recommended that you vote FOR the proposed sale of our majority-owned subsidiary, Pixelworks Semiconductor Technology (
Background & Strategic Rationale
Pixelworks Shanghai is our majority-owned,
After agreed-upon share transfers to other shareholders, transaction costs and withholding taxes, we expect to receive net cash proceeds in the range of approximately
The rationale for this transaction is three-fold:
- Unlocking value for shareholders: While Pixelworks Shanghai has strategic value, this transaction captures the optimal realizable value in the current environment and allows us to monetize a significant asset.
- Focused on core strengths: With Pixelworks Shanghai under new ownership, Pixelworks will be better positioned to concentrate on our global technology licensing business, specializing in cinematic visualization solutions. As an asset-light, IP-rich company in this space, we will have competitive differentiation and compelling, longer-term growth potential.
- Strengthened financial flexibility: The net cash proceeds will enhance our balance sheet, give us increased flexibility to invest in growth opportunities, support our licensing initiatives, and better allocate capital to the highest-return projects.
Why the technology licensing business is good for shareholders
Post-transaction, Pixelworks will transform into a pure play technology licensing company specializing in cinematic visualization solutions. Its flagship TrueCut Motion™ platform - used by leading filmmakers to enhance the cinematic experience across premium theatrical and home screens - anchors a portfolio of proprietary imaging technologies that extend beyond film into high-growth enterprise, consumer visualization, and entertainment markets.
By exiting our majority ownership of the Pixelworks Shanghai manufacturing and design subsidiary, we will free up company resources, management attention and capital to grow the margin-enhanced licensing business, which is inherently more scalable, less capital-intensive, and has the potential to deliver higher return on invested capital.
With more than two decades of image-processing innovation, Pixelworks will continue to enable authentic, high-fidelity viewing experiences across all screens.
Next Steps and Your Vote
The proposed sale will be presented for shareholder approval at the upcoming special meeting. Detailed information about the terms, the background of the transaction, risk factors and the Board's recommendation is included in the proxy statement. Your vote is very important no matter how many shares you own. The Board and management believe this is a pivotal transaction for the future of Pixelworks—and unanimously urge you to vote FOR the sale of Pixelworks Shanghai.
We ask you to review the proxy materials carefully and submit your proxy or vote by internet, telephone or mail as soon as possible so that your shares will be represented at the meeting. If you have any questions or would like to obtain another proxy card, please contact our proxy solicitor, Alliance Advisors, at 855-206-1342 or via email at PXLW@allianceadvisors.com.
Closing
On behalf of the Board and everyone at Pixelworks, I'd like to thank you for your ongoing trust and support. We believe this transaction marks an important step toward sharpening our focus, unlocking value, and positioning Pixelworks for a stronger and more dynamic future, one in which our technology licensing solutions can flourish to the benefit of our shareholders.
Sincerely,
Todd DeBonis
Chief Executive Officer
Pixelworks, Inc.
Forward-Looking Statements
This shareholder letter contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this communication are forward-looking statements. Examples of such statements include, but are not limited to, statements regarding the satisfaction of closing conditions with respect to the Sale, including approval by the Company's shareholders; the expected amount of gross proceeds from the Sale to the Company; and the Company's expectations regarding the use of net proceeds from the Sale. We may not actually achieve the plans, carry out the intentions or achieve the objectives disclosed in the forward-looking statements, and you should not place undue reliance on these forward-looking statements. Such statements are based on management's current expectations and understandings and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, market and other conditions and other factors described in our other filings with the Securities and Exchange Commission (the "SEC") from time to time. We disclaim any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made, except as required by law. You should review additional disclosures we make in our filings with the SEC, including our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and current reports and other documents that we have filed or may file in the future. You may access these documents for no charge at http://www.sec.gov.
Additional Information and Where to Find It
In connection with the proposed Sale, Pixelworks has filed a proxy statement on Schedule 14A with the SEC. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
Free copies of the definitive proxy statement, as well as other filings containing information about Pixelworks and the proposed Sale, may be obtained at the SEC's Internet site (http://www.sec.gov). You may also obtain the documents filed with the SEC, free of charge, in the "Investors" section of our website, www.pixelworks.com, under the heading "Investors - SEC Filings" or by requesting them in writing or by telephone at: Pixelworks, Inc., 16760 SW Upper Boones Ferry Rd., Suite 101,
Participants in the Solicitation
Pixelworks and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Pixelworks in connection with the proposed Sale. Information about the Pixelworks directors and executive officers is set forth in the proxy statement for the Company's 2025 annual meeting of shareholders, as filed with the SEC on Schedule 14A on April 21, 2025. Additional information regarding the interests of those participants and other persons who may be deemed participants may be obtained by reading the Proxy Statement and other relevant documents regarding the proposed Sale. Copies of these documents may be obtained free of charge from the sources described above.
About Pixelworks, Inc.
Pixelworks provides industry-leading content creation, video delivery and display processing solutions and technology that enable highly authentic viewing experiences with superior visual quality, across all screens – from cinema to smartphone and beyond. The Company has more than 20 years of delivering image processing innovation to leading providers of consumer electronics, professional displays, and video streaming services. For more information, please visit the Company's web site at www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are trademarks of Pixelworks, Inc.
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SOURCE Pixelworks, Inc.
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