Pixelworks, Inc. has postponed its special meeting of stockholders to December 8, 2025, giving shareholders additional time to decide on Proposal 1, which would authorize the sale of all shares of Pixelworks Semiconductor Technology (Shanghai) that the company holds indirectly.
The proposal received overwhelming support from the shares that were already cast, with roughly 98 % voting in favor. However, the votes represent only about 57 % of the outstanding common shares on the record date of October 17, falling short of the 67 % threshold required for approval.
The sale of the Shanghai subsidiary is a cornerstone of Pixelworks’ strategic pivot from a capital‑heavy semiconductor business to an asset‑light technology‑licensing model centered on its TrueCut Motion platform. The transaction, valued at approximately $133 million (RMB 950 million), is expected to net the company $50‑$60 million in cash, providing liquidity to fund the new focus and reduce geopolitical exposure in China.
Pixelworks’ most recent quarterly results, released on November 26, provide context for the sale. Revenue for Q3 2025 was $8.77 million, down 8 % from $9.53 million in Q3 2024, but the company beat consensus earnings estimates, reporting a non‑GAAP net loss of $3.8 million (–$0.69 per share) versus an expected –$0.86. Gross margin improved to 49.9 % from 46 % in Q2 2025, driven by a stronger mix of home and enterprise shipments and disciplined cost management.
CEO Todd DeBonis emphasized that the sale “represents the optimal path forward for Pixelworks, Inc., as well as the Pixelworks Shanghai business, while also capturing the maximum realizable value for all of the Pixelworks Shanghai shareholders.” He added that the company’s Q3 performance “demonstrates meaningful improvement in operating results, with cost reductions and a favorable product mix supporting margin expansion.”
Proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended voting in favor of Proposal 1, reflecting confidence in the strategic rationale and the financial benefits of the transaction.
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