Feeds

Intel pays Creative $50m for ZiiLabs GPU licence, people

Small change for one firm, lifeblood for the other

Top 5 reasons to deploy VMware with Tegile

Creative Labs is to all sell parts of its graphics chip wing, ZiiLabs, to Intel for $50 million (£31.4 million).

The deal involves a $30 million payment for “certain engineering resources and assets” from ZiiLabs' UK operation and a further $2 million for “the licensing of certain technologies... relating to ZiiLabs' high performance GPU technology”.

Singapore-based Creative stressed that ZiiLabs will remain one of its wholly owned subsidiaries and that it is keeping hold of the ARM-based ZMS application processors and StemCell media chips developed by ZiiLabs, which it will continue to sell and support.

It said that “it will be more cost-effective for Creative to outsource to third-party contract chip-layout houses on future advanced chips for its products”, which suggests that it’s its in-house resources of this kind - what Creative calls "a design entity engaged in... the development of various silicon solutions" - that have been sold to Intel.

So all this is more about Intel acquiring chip development expertise than buying into the ARM world. For the chip giant, $50 million is small change, but it's lifeblood for Creative. It has been shedding the stuff for some years - it lost $4.5 million in the three months to 30 September 2012, its most recently completed quarter - now as demand for its once-famous SoundBlaster technology and its media players has dried up.

Increasingly, Creative has turned to licensing its intellectual property portfolio in a bid to make ends meet.

ZiiLabs was established in 2009 out of 3DLabs, a graphics chip pioneer formed in 1994 through a management buyout DuPont’s DuPont Pixel subsidiary. 3DLabs was acquired by Creative in 2002. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Oi, Tim Cook. Apple Watch. I DARE you to tell me, IN PERSON, that it's secure
State attorney demands Apple CEO bows the knee to him
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Hey, Mac fanbois. HGST wants you drooling over its HUGE desktop RACK
What vast digital media repository could possibly need 64 TERABYTES?
Soundbites: News in brief from the Wi-Fi audiophile files
DTS and Sonos sing out but not off the same hymnsheet
In a spin: Samsung accuses LG exec of washing machine SABOTAGE
Rival electronic giant tries to iron out allegations
Your chance to WIN the WORLD'S ONLY HANDHELD ZX SPECTRUM
Reg staff not allowed to enter, god dammit
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.