AMD Sells Off Handheld Graphics and Multimedia Processor Business to Qualcomm

From X-bit Labs: Qualcomm on Tuesday said that it has acquired certain graphics and multimedia technology assets, intellectual property and resources that were formerly the basis of AMD’s handheld business. The acquisition enhances Qualcomm’s multimedia capabilities as well as intellectual property portfolio while further limiting AMD’s own product portfolio to processors and graphics chips.

“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. 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-chip (SoC) products,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies.

Under the terms of the agreement, Qualcomm has extended offers of employment to various design and development teams from AMD’s handheld business. The teams are developing technologies to enhance mobile devices in areas including 2D and 3D graphics, audio/video, display, and architecture.

The two companies signed and closed a binding agreement on January 19, 2009, having already received required regulatory approvals. Cash consideration from Qualcomm to AMD, as part of the transaction, is $65 million, subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations. Both AMD and Qualcomm are committed to a seamless transfer of business assets, as well as a smooth transition for employees.

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