“Nvidia Corp. said Monday it will buy PortalPlayer Inc. for $357 million in stock to accelerate its offering for chips used in portable music players and other hand-held electronic devices,” Matt Andrejczak reports for MarketWatch.
Andrejczak reports, “Nvidia, a maker of graphics chips used in personal computers and cell phones, is buying PortalPlayer for $13.50 a share, representing a 19% premium to the 20-day average closing price of PortalPlayer shares through Nov. 3. The stock closed Friday at $13.36.”
Andrejczak reports, “The deal is subject to regulatory and shareholder approvals.. .San Jose, Calif.-based PortalPlayer supplies chips and related software used in Apple Computer Inc.’s iPod music players and SanDisk Corp.’s Sansa music players, the most popular hand-held music players sold in the United States.”
“PortalPlayer has struggled this year, losing a key supply agreement with Apple to supply the main processor that runs the current line of iPod Nanos. Samsung Electronics won that contract. PortalPlayer still provides chips used for Apple’s line of video iPods,” Andrejczak reports. “There has been rampant speculation that Intel would perhaps acquire Nvidia after Nivida’s chief rival, ATI Technologies Inc., was acquired by Advanced Micro Devices Inc. last month.”
Full article here.
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