UPDATE: Benchmark Downgrades MIPS Technologies to Hold on Lack of Catalysts From Transaction

Benchmark lowered its rating on MIPS Technologies

from Buy to Hold. Benchmark noted, "Early this morning, it was announced that: 1) MIPS will sell 498 patents to AST (a.k.a. Bridge Crossing) for $350 million, 2) Imagination Tech will buy the remaining 82 MIPS patents and MIPS operating business (licensable design IP) for $60 million and 3) MIPS shareholder will be paid $7.31/share in net proceeds in 1Q13 through a recapitalization of MIPS common stock. Because this transaction has been in the works for 18 months, we doubt a higher bid will come along, and accordingly, we are downgrading our rating from Buy to Hold. MIPS Technologies closed at $7.02 on Monday.