Feeds

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

Small change for one firm, lifeblood for the other

Secure remote control for conventional and virtual desktops

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. ®

The essential guide to IT transformation

More from The Register

next story
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
The agony and ecstasy of SteamOS: WHERE ARE MY GAMES?
And yes it does need a fat HDD (or SSD, it's cool with either)
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Apple to build WORLD'S BIGGEST iStore in Dubai
It's not the size of your shiny-shiny...
Just in case? Unverified 'supersize me' iPhone 6 pics in sneak leak peek
Is bigger necessarily better for the fruity firm's flagship phone?
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?