In order to strengthen its handheld multimedia capabilities — and to take advantage of the down market, we might add — Qualcomm acquired certain graphics and multimedia technology assets, intellectual property and resources from AMD’s handheld business.
The deal is already approved and signed, and Qualcomm agreed to pay AMD $65 million in cash, an amount that is subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations. Both companies committed to a seamless transfer of business assets, as well as a smooth transition for employees.
Speaking of employees, under the terms of the agreement, the new boss [Qualcomm] extended offers 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.
Commenting on the announcement, Qualcomm’s Steve Mollenkopf said: “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.”