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Technology Stocks : C-Cube
CUBE 36.04-0.8%Dec 31 3:59 PM EST
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To: Scotsman who wrote (47166)11/1/1999 10:27:00 AM
From: BillyG  Read Replies (1) of 50808
 
Divi and CUBE are closely tied, and they will remain tied after the spinoff according to the spinoff documents (purchase agreements, licensing of intellectual property). Wins for Divi help CUBE semi because:

1. CUBE sells encoders and other silicon to Divi.
2. Divi tells CUBE about system requirements, operator preferences, and trends that so that CUBE can incorporate desirable real-world features into its encoders.
3. Presumably CUBE decoders and settop box silicon will work "seamlessly" with encoders and head-end systems installed by Divi. This may give CUBE an advantage in this very high volume business.
4. Perhaps Divi, CUBE, and the system operators can work together to add special features that benefit customers of the system operator, which is good for everyone involved.
5. CUBE can assert its patents against CUBE and DIVI competitors, which will benefit both CUBE and DIVI because Divi will be licensed under CUBE's patents.
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