Black-Scholes, I rather doubt Intel is interested in C-Cube and here's why:
C-Cube manufactures ICs for video compression, MPEG1 and MPEG2. They also develop decompression chips for VCD (Video CD) used mostly in China and have recently introduced the MPEG2 decoder chipset for use in digital set-tops.
They are missing the communication part of the set-top.
Broadcom is a communication company, which I thought didn't have the MPEG IC, but according to the Forbes article, I guess they do now (which doesn't surprise me: and it looks like maybe they decided to make rather than buy the solution.)
Divicom is a systems organization, making the head-end equipment and providing the system management. I believe they use ICs from C-Cube and Broadcom.
After the acquisition of Chips, I was of the impression Intel preferred to do MPEG2 in software.
However, if Intel is really seeking the hardware MPEG chips, for MPEG compression, they could buy one of the other smaller startup companies (which may do a better job at a lower cost.)
About Intel's involvement in Set-Top chips, the Forbes article indicated there are 100 engineers already working on an IC, although I don't think they said which IC (i.e. is it the communication part or the compression part or both?) I don't know.
Broadcom is better positioned than C-Cube, although, this is reflected in the stock price.
It could be C-Cube's stock is rising because, as Forbes indicated, there is a potential European company interested, and this wouldn't surprise me: it might be hard for a company which is in located in Europe to track down one of the smaller MPEG2 startups in the USA, and this wouldn't be so difficult for Intel to do, if they really wanted to pursue the hardware MPEG2 chips, which I rather doubt they do.
Amy J |
