Qualcomm buys some Advanced Micro Devices assets
SAN DIEGO (AP) – Qualcomm Inc. said Tuesday that it purchased some handheld graphics and multimedia technology assets from Advanced Micro Devices Inc. (AMD) for $65 million in cash.
Qualcomm expects the transaction will reduce its fiscal 2009 pro forma earnings by about 2 cents per share but will add to earnings by the second half of 2010.
The chip maker has extended employment offers to various design and development teams from Advanced Micro Devices' handheld operations as part of the deal.
"This acquisition of assets from Advanced Micro Devices' handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years," Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies, said in a statement.
Qualcomm's cash payment to Advanced Micro Devices is subject to adjustments for worker-related expenses and other items.
On Friday, Sunnyvale, Calif.-based AMD said it planned to cut 1,100 jobs, or 9 percent of its global staff, and slash remaining employees' pay to help the company navigate a brutal market for computer sales.
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