C-Cube to Unload Chip Biz; DiviCom to Join with Harmonic
C-Cube will spin off its semiconductor business before finalizing the Harmonic acquisition of DiviCom in a stock trade that could result in a value of $1.7 billion for the combined new company. C-Cube shareholders will also receive shares of the spun-off semiconductor business, according to Business Wire.
"The combination of DiviCom and Harmonic creates a powerful broadband networking company that is the premier provider of open solutions for voice, video, and data infrastructure," according to C-Cube CEO Alexandre Balkanski.
C-Cube shareholders could benefit from the sale of the semiconductor business, said division president Umesh Padval. "C-Cube Semiconductor has made excellent gains over the past year, and leads the world in the digital video marketplace. We foresee accelerating opportunities in our growth platforms of DVDs, set-top boxes, and codecs." Stockholders of both companies must approve the merger, which could take place in the first quarter of 2000.