Wednesday, August 22, 2012
MaxLinear Cashes Out Venture Capital Investors
In an unusual move, Carlsbad-based MaxLinear said today that it has reached a private deal to repurchase a significant number of its shares from its venture capital investors. The publicly held firm said it will repurchase 1.65M shares of its own stock, including 1,152,338 shares of its Class C common stock from Mission Ventures, and 500,000 shares of Class B common stock from US Venture Partners. The deal will completely cash out Mission Ventures, which will no longer hold any ownership interest in MaxLinear. USVP will continue to hold 2,396,571 shares of MaxLinear's Class B stock. MaxLinear said the move was a "unique" decision due to the present circumstances of its business. The purchase price for the shares are $5.59 per share, totaling $9.2M. MaxLinear had its IPO back in 2010, but its shares have struggled since that time, dropping from its initial IPO surge which had sent the firm's stock to $18.30 on its first day of trading.