AMD trying to pull Transmeta out of woods?

A few months ago, I had written about the AMD- Raza deal,AMD selling off its Alchemy range to Raza and also stopping its Geode division, now it seems they did that to help Transmeta with their Crusoe and Efficeon family which where directly in contention with the formers' market. Now, they have gone a step further by granting a mammoth 7.5$ cash for preferred stock deal with Transmeta.

Transmeta was once one of the better processor manufacturers who were known for their low power processors, but lately are struggling int the market. Last year they posted a net loss of over 24$ million. They had to make amends by cutting over 39% of their employee strength and also concentrating more over lawsuits over intel on Intellectual property infringement. Maybe AMD felt they have to back Transmeta now, already AMD has lost a lot of money in 2007 Q1. As the saying goes, "Enemy's enemy becomes friend...".

Transmeta did not waste the oppurtunity to lavish praise on AMD, "AMD has long been a leader in the development and delivery of energy-efficient, high-performance computing technologies, standards and initiatives," stated Transmeta president and CEO Les Crudele. "Transmeta has been proud to endorse and contribute to those industry leading activities, and we look forward to continuing our collaboration with AMD on technology initiatives in the future."

In return AMD may hope to take advantage of energy-efficient Transmeta technology to their own advantage . AMD President and CEO Dirk Meyer claims, "Transmeta was a key ally in helping to bring our highly-successful AMD64 technology to market and has supported the widespread industry adoption of both AMD64 and AMD’s HyperTransport technology."
But I am not sure if there is going to be a repeat of the ATI merger, here.

Interesting note: Linus Trovalds was an employee of Transmeta once upon a time.

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