News & Analysis
Comment
JeanetteHay
That is a hefty price for those few technologies. I am interested to see what ...
junko.yoshida
I followed up many of the questions you asked here with the CSR's CEO this week. ...
Samsung acquires CSR's mobile business
Peter Clarke
7/17/2012 4:10 AM EDT
Samsung Electronics Co. Ltd. has agreed to pay CSR plc (Cambridge, England) $310 million for its handset connectivity and location operations and the associated technology. Samsung has also agreed to invest an additional $34.4 million to take a 4.9 percent stake in publicly-held CSR.
The deal leaves CSR free to focus on higher margin business and growth areas such as: voice & music, automotive infotainment, indoors location finding, imaging and Bluetooth smart.
CSR, founded as Cambridge Silicon Radio Ltd. in 1998 as a spin off from Cambridge Consultants, plans to return up to $285 million of the Samsung money to shareholders via a tender offer. The deal is expected to close in the fourth quarter of 2012.
CSR has entered into a conditional binding agreement to transfer of CSR's development operations in handset connectivity and location, including 310 people, together with certain rights over CSR's technology in these areas. However, none of the revenues associated with CSR's existing handset products will be transferred.
In addition CSR retains the rights to use future connectivity and location technology, such as CSR9800, in areas other than handsets and mobile devices.
Related links and articles:
www.csr.com
News articles:
Mister GPS leaves CSR
CSR buys Trident's audio processor line
CSR opens automotive design center in Germany
CSR and SiRF combine to launch a new era of connectivity and location
|
|
|
|
|
Navigate to related information
junko.yoshida
7/17/2012 6:35 AM EDT
This does explain why Kanwar Chadha, co-founder of SiRF, left CSR recently. http://www.eetimes.com/electronics-blogs/rambling--round/4376371/Mr--GPS-leaves-CSR
But CSR's strategy begs the question.
I fail to see where in the world CSR, wtihout the mobility part of it, will be able to find "higher margin business and growth areas." The release lists "voice & music, automotive infotainment, indoors location finding, imaging and Bluetooth smart."
Really? Are they higher margin business???
Sign in to Reply
casual3
7/17/2012 8:26 AM EDT
These are definitely lower volume areas, that's why they are mentioned to be "higher margin" because, in theory, higher volume means lower margin, and vice versa.
The question is: are these non-mobility or not? If CSR is only targeting non-handset related business, they will be reduced to a niche player and become irrelevant very soon.
Sign in to Reply
peter.clarke
7/17/2012 9:41 AM EDT
given that handset business is almost no margin...I would think that automotive and some voice and music applications could be higher margin.
Sign in to Reply
casual3
7/17/2012 9:06 AM EDT
It reconfirms a trend that only "platform" (Qualcomm, Broadcom, Mediatek) and system (Apple/Samsung) companies can survive handset business, others will all struggle, and CSR is one of the victims.
Sign in to Reply
peter.clarke
7/17/2012 9:44 AM EDT
@casual3
A neat way to put it.
It looks like CSR is acting on the principle that much of what used to be its domain of a separate chip in the handset will soon be wrapped up in the platform-SoC.
They are moving on to pastures new - whether they can be as successful as they have been is another matter.
But they got $310 million for their efforts, which as they say is not a bad return.
Sign in to Reply
rick.merritt
7/17/2012 10:56 AM EDT
Indeed the mobile app processor is the vacuum cleaner of handset tech.
The press release leaves some questions unanswered:
--Didn't Samsung have basic Bluetooth and GPS tech and patents yet for its Exynos line?
--What's left for CSR and what the heck is Bluetooth smart?
Sign in to Reply
Joe Decuir
7/17/2012 3:22 PM EDT
Bluetooth "Smart" = Bluetooth Low Energy, from the Bluetooth Core Spec 4.0 and later. There are over 2 dozen profiles defined over it so far, with a lot more in the pipeline.
There is plenty of business there.
Sign in to Reply
Frank Eory
7/17/2012 4:16 PM EDT
So Samsung is picking up 310 people and some non-exclusive IP rights, but not the revenues?
Curious coincidence -- $310 million for 310 people, a million dollars a head.
Sign in to Reply
elctrnx_lyf
7/18/2012 12:07 AM EDT
This acquisition gives a better edge to embed all latest wireless technologies into Samsung mobiles very easily. Unstoppable is the right word to describe Samsung.
Sign in to Reply
GREAT-Terry
7/19/2012 11:01 AM EDT
It seems a good deal for Samsung but may not be good to CSR, besides investor can immediately gain some money back. I don't know if CSR is having something totally different from radio connectivity that they think can shine and give them "high margin", but I really doubt it!
Sign in to Reply
eewiz
7/25/2012 1:05 AM EDT
I guess the "handset connectivity and location operations " include Bluetooth, WiFi and GPS solutions. Is that correct? CSR selling bluetooth business is like selling the soul of the company. What is left out at CSR to generate any revenue?
Sign in to Reply
junko.yoshida
8/3/2012 2:46 PM EDT
I followed up many of the questions you asked here with the CSR's CEO this week. See the new story here:
http://www.eetimes.com/electronics-news/4391689/Does-Samsung-deal-leave-CSR-out-in-the-cold-
Sign in to Reply
JeanetteHay
10/9/2012 11:05 PM EDT
That is a hefty price for those few technologies. I am interested to see what Samsung can do with those few acquisitions. The huge injection of funds in CSR would certainly give it a lot of room to focus on its other businesses, but then it announces that they will return much of the money to Samsung shareholders. I wonder what the strategy to that is.
Jeanette - http://www.lyonessscamreview.com
Sign in to Reply