Broadcom Pays $77.5m for Sand Video

Telecommunications Mergers & Acquisitions, April, 2004 by Anonymous

In a bid to bolster its line of multimedia microchips, California's Broadcom Corp. has paid $77.5 million in stock and cash to acquire privately held Sand Video Inc. of Andover, Massachusetts, which designs video compression chips.

Both Broaddcom and Sand Video are "fabless" chip companies, meaning that they design custom chips that are then manufactured by silicon "foundries" in places like Taiwan. Broadcom designs chips for use in cable television set-top boxes and broadband Internet systems. The company, which competes with such firms as Texas Instruments Inc. and Analog Devices Inc. of Norwood, Massachusetts, posted a $960 million loss last year on revenue of $1.6 billion.

Sand Video, a start-up founded by graduates of the Massachusetts Institute of Technology,...

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