Fallen star SGI to sell most assets for $25M

SUNNYVALE, Calif. -- Former Silicon Valley star Silicon Graphics has filed for bankruptcy protection for a second time and agreed to sell most of its assets for $25 million to computing rival Rackable Systems.

The deal announced Wednesday punctuates Silicon Graphics' decade-long downfall.

Silicon Graphics emerged as a hot commodity in the 1990s as its fancy computers produced dazzling special effects for movies like "Jurassic Park."

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But SGI lost customers as other rivals came up with less expensive products, sending the Sunnyvale-based company into a slump that led in its first bankruptcy filing in 2006.

Rackable Systems expects to take control of most Silicon Graphics' computer hardware and software within 60 days.