Qualcomm Acquires AMD’s Handheld Technology Assets

To say I have not been active in writing about the Qualcomm Driver debacle is quite the understatement. (don’t believe me? CLICK HERE) After the Kaiser Driver issue that was beautifully illuminated by the efforts of HTCClassAction.org, there was a distaste by many of the hard core WinMo users that I don’t think ever truly went away. With the release of the Diamond, Touch Pro (Fuze), and most notably the HTC Touch HD (drool), a lot of criticism has seemed to ease with Qualcomm and HTC. Yesterday however, we learned that Qualcomm has acquired “certain” AMD Graphics and Multimedia Handheld Technology Assets.

I think this is a very smart move by Qualcomm as QVGA seems to be a thing of the past in favor of larger, VGA and WVGA screens that are geared more towards the growing interest in the online multimedia experience. From Qualcomm’s press release:

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.

This is definitely great news for Mobility as not only will we likely see better video quality, but also the speed and performance that were missing from the Kaiser with the 2D Drivers. With other company’s like Nvidia that are attempting to gain market share in the Handheld Mobility Market, this may be exactly what Qualcomm needs to gain favor with the hard core multimedia consumers. Read the entire Qualcomm press release after the break.

Source: wmpoweruser.com

Photo Source: HTCClassAction.org

Technology and Resource Assets to Strengthen Qualcomm’s Leadership Position in Mobile Multimedia

SAN DIEGO AND SUNNYVALE, Calif – January 20, 2009 – Qualcomm Incorporated (Nasdaq: QCOM) and AMD (NYSE: AMD) today announced that Qualcomm 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, allowing Qualcomm to strengthen its leadership position in delivering 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-chip (SoC) products.”

“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 J. Rivet, chief operations and administrative officer, chief financial officer of AMD. “We believe the talented AMD Handheld employees will be a great asset to Qualcomm.”

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.

Qualcomm expects the acquisition to be approximately $0.02 dilutive to pro forma earnings per share in fiscal 2009 and accretive to earnings by the second half of calendar year 2010.

About AMD
Advanced Micro Devices (NYSE: AMD) is an innovative technology company dedicated to collaborating with customers and partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit www.amd.com

About Qualcomm
Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2008 FORTUNE 500 company. For more information, please visit www.qualcomm.com