Nvidia to acquire PortalPlayer | iLounge News

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Nvidia to acquire PortalPlayer

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By LC Angell

Contributing Editor
Published: Monday, November 6, 2006
News Categories: iPod

Nvidia has agreed to buy PortalPlayer for about $357 million in stock. PortalPlayer, which supplies the audio chip used in the fifth-generation iPod, was hit hard this year when Apple picked Samsung to power the second-generation iPod nano and second-generation iPod shuffle. Analysts said the news was the company’s “worst nightmare” because Apple accounted for more than 90% of PortalPlayer’s revenue at the time. Interestingly, it was reported earlier this year that Nvidia had beat out Broadcom to supply the multimedia chip inside the next-generation video iPod. “We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod,” American Technology Research analyst Satya Chillara said at the time.

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Comments

1

Am I wrong, or did Apple have a fairly substantial stake in PortalPlayer?

Posted by iPodG5 on November 6, 2006 at 4:13 PM (PDT)

2

Wasn’t one of the ‘cited’ reasons for Apple dropping PortalPlayer’s stuff because they (PP) leaked some Apple details just before one of the Mac Expos? Still gotta suck though…

Posted by SpoonDogSVT on November 6, 2006 at 9:44 PM (PDT)

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