14 DAY TRIAL // AppleInsider - this immense sea of knowledge on everything related to Apple - reported several days ago that Nvidia has beaten out Broadcom Corp. in a major design win for Apple's next-generation iPod product line. Also, this was the second major iPod component supplier swap in that period. Quite a while back, Samsung Electronics scored a major design win when Apple Computer selected its new MP3 media processor over one from PortalPlayer to power the iPod nano.
Well, irony has struck as AppleInsider now reports that Nvidia will acquire PortalPlayer. Nvidia just announced that it has signed a definitive agreement to acquire the iPod chipmaker PortalPlayer, in a cash for stock transaction.
The Board of Directors of each company has approved the term of agreement and now, Nvidia will pay $13.20 in cash for each outstanding share of PortalPlayer common stock. The total purchase price of the deal is of approximately $357 million or aproximately $161 million net of cash on PortalPlayer's balance sheet as of September 30, 2006, AppleInsider reports.
Based on our analysis, we believe Nvidia is designed into the next-generation video iPod socket at the expense of Broadcom, American Technology Research analyst Satya Chillara told clients in a research note released this July.
We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features that Broadcom supported with the existing video iPod, Chillara added.
At this same time, NVIDIA chief executive Jen-Hsun Huang stated: Modern mobile devices are miniaturized yet powerful multimedia computers. At the core of their architectures are complex Application Processors integrating microprocessors, system logic, networking, and multimedia processors. With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most personal computer.
NVIDIA's $357 million purchase price represents an approximately 19 percent premium to the 20-day average closing price of PortalPlayer through Friday, November 3, 2006. The deal is still subject to regulatory approvals and other customary closing conditions, AppleInsider reports.
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