Pixelworks Completes Previously Proposed Sale of its Shanghai Semiconductor Subsidiary to VeriSilicon

Core Viewpoint - Pixelworks, Inc. has successfully completed the sale of its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics, resulting in significant cash proceeds for the company [1]. Group 1: Transaction Details - The transaction involved the transfer of all outstanding capital stock in Pixelworks Shanghai to the Buyer, yielding cash proceeds of approximately RMB 357 million, or about $51 million USD, net of transaction costs and withholding taxes [1]. - An additional amount of approximately RMB 8.7 million, or about $1.2 million USD, is being held in an escrow account pending the resolution of certain tax matters in China [1]. - All previous repurchase rights held by other prior shareholders of Pixelworks Shanghai were fully released upon the closing of the transaction [1]. Group 2: Company Overview - Pixelworks provides innovative video and display processing solutions, enhancing viewing experiences across various screens, including cinema and smartphones [2]. - The company has over 20 years of experience in delivering image processing innovations to leading providers in consumer electronics, professional displays, and video streaming services [2].