So PortalPlayer‘s independent run is over. The graphics chip maker (for portal media players like iPod) has been acquired by Nvidia for $357 million. It was one of the hottest hybrid (India-US) companies in India. The Hyderabad and San Jose-based PortalPlayer made news when it became one of the largest suppliers of chips to Apple’s iPod. The company had a market cap of a little under $600 million a few months ago.
But everything that can go wrong has gone wrong with the company. In April, Apple said it will not include one of PortlPlayer’s chips in Nano. Apparently Apple contributed 90 per cent of PortalPlayer’s revenues. Samsung Electronics too announced it would replace PortalPlayer’s with its own chip. PortalPlayer’s market cap crashed by half. Its revenues have also been crashing. In October, it announced $34.8 million in net revenue for the third quarter, compared with $57.9 million in the same quarter previous year. The company was left with no option but to sell out, it seems.
“We have spent the past several months extensively exploring our strategic options,” PortalPlayer chairman Richard Sanquini said in a statement. “We feel the advantages offered by the Nvidia acquisition are the most compelling.” Anyways, for Nvidia the acquisition makes sense since it can combine PortalPlayer’s products with its own and make a compelling offering for portable media players, including that of Apple’s. (For more, read TheDeal.com story here)
–Hyderabad Startup PortalPlayer Makes The Next Big Leap – Chips For Mini Video Displays
–PortalPlayer Plans To Expand Hyderabad Facility; To Recruit 100 Engineers
-<a href="http://www.contentsutra.com/entry/portalplayers-india-connection-makes-it-more-competitive/" title="PortalPlayer