Call it a battle of survival. Advanced Micro Devices is following in Intel’s footsteps by slashing prices on its processors and is selling off parts of its business in a $65 million deal to streamline operations.
On Tuesday, Qualcomm acquired from AMD graphics and multimedia assets, intellectual property, and resources that were formerly the basis of the chipmaker’s handheld business. Qualcomm said the acquisition bolsters its multimedia capabilities and sets the stage for delivery of more advanced products that redefine next-generation mobile user experiences.
“This acquisition of assets from AMD’s handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “Bringing this technology in-house creates even greater synergy as we seamlessly integrate the best-in-class multimedia performance AMD offers into our system-on-a-chip products.”
A Done Deal
Qualcomm and AMD inked the deal on Jan. 19. The companies had already received the required regulatory approvals. The $65 million in cash Qualcomm paid AMD is subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations. The companies said they are committed to a seamless transfer.
In fact, as part of the acquisition deal, Qualcomm has offered to hire the design and development teams from AMD’s associated handheld business. The teams are currently developing technologies to enhance mobile devices in areas including 2-D and 3-D graphics, audio/video, display and architecture.
“With the sale of these handheld technology assets and resources to Qualcomm, we are better able to focus on our core business and leverage our unique position as a leader in both x86 computing and high-end graphics,” said Robert Rivet, chief operations and administrative officer and CFO of AMD. “We believe the talented AMD Handheld employees will be a great asset to Qualcomm.”
Qualcomm’s New…