Dudes'...there's a good chip company up for sale....you interested?
HLIT took Divicom...now the chip biz is on the block.
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Harmonic Agrees To Buy C-Cube For $1.7 Bln In Stock
By Duncan Martell
PALO ALTO, Calif. (Reuters) - Harmonic Inc (Nasdaq:HLIT - news). Tuesday agreed to buy the Divicom business of C-Cube Microsystems Inc (Nasdaq:CUBE - news). for about $1.47 billion in stock, saying it would make Harmonic stronger in delivering video, voice and data over high-speed networks.
Based upon Harmonic's closing price of $59.875 Tuesday, the value of the transaction would be about $1.47 billion. C-Cube shareholders will receive 0.5427 shares of Harmonic stock for each share of C-Cube, valuing each C-cube share at $32.49, 20 percent less than C-Cube's closing price of 40 3/8 Tuesday.
Harmonic, which makes digital and fiber optic systems that enable cable TV and other network operators to provide interactive services such as high-speed Internet access and video-on-demand, also said that C-Cube's semiconductor business would be spun off to shareholders, or, if a suitable bidder comes forward, sold.
But C-Cube spokesman Alan Markow told Reuters that the company fully expects the chip business, which accounted for about half of C-Cube's revenue of $169.5 million for the nine months ended Sept. 30, to be spun off to shareholders.
'Good Deal'
One Analyst said the transaction appeared to be a good deal for C-Cube shareholders. One of C-Cube's most promising products is a single chip costing less than $100 that can compress digital video about 100 times and then decompress it, all on a single semiconductor. |
