The alternative to the sale was to close Metalink down.
The half empty part of the glass: No one would call Metalink Ltd's (Nasdaq: MTLK;TASE: MTLK) sale of its wireless local area network (WLAN) business to Lantiq an impressive deal. Metalink has erased a lot of value for its investors; the share has plummeted from tens of dollars to just tens of cents. Metalink founder and CEO Tzvika Shukhman already sold his shares for tens of millions of dollars as part of the company's Nasdaq offering, and the company's recent change in business direction has not yet been reflected at the financial level. This was clearly a forced sale and not because of any increased interest in the company.
The half full part of the glass: It should be remembered that the alternative to the sale was to close Metalink down completely. The debt payment in two months would have brought the company to the verge of precipice. The company was actually able to find someone interested in its technology and consider it a growth engine. Lantiq did not only buy intellectual property, but intends to employ Metalink's 50 R&D employees in Israel. It is premature to say what the future will hold, but this is unquestionably good news for them.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2010
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