News: NVidia plays up to Apple
Posted: November 11, 2006 12:18AM
- "Nvidia bought itself some leverage with Apple Computer on the cheap when it ponied up $357 million to buy tiny PortalPlayer (the semiconductor maker that designs chips for Apples video iPods) on Monday.
Santa Clara, Calif.-based Nvidia said it will pay $13.50 a share for the specialty chip company, a 19% premium to PortalPlayers previous 20-day trading average.
However, the $357 million price includes $196 million in cash reserves held by PortalPlayer which makes the real price tag $161 million, a mere pittance for Nvidia and helps the company combat a growing threat in cell phones due to Advanced Micro Devices recent purchase of rival ATI Technologies."