Intel (Nasdaq: INTC) isn't satisfied with ruling your office. Now, the chip giant wants to make sure your cable box has Intel Inside.
Today, Intel announced the acquisition of the cable modem product team from fellow silicon veteran Texas Instruments (NYSE: TXN). The TI unit is known for its Puma cable-standards controller which can be found in newer cable modems and set-top boxes from end-user suppliers Cisco Systems (Nasdaq: CSCO) and Motorola (NYSE: MOT).
Financial details of the deal were not disclosed, and the contract should close by the end of the year. That means we're looking at a rather small price tag, or else Intel would have to share the details out of respect to fiduciary duty and SEC regulations. That, in turn, means it must be a pretty good deal -- if Cisco or Motorola want to put a modern cable connection inside their boxes, their choices for DOCSIS 3.0 support are pretty much limited to Broadcom (Nasdaq: BRCM) and this Puma solution -- and Puma was first to market.
I don't think this is a vote of no confidence in the computer market, but rather an attempt to broaden Intel's revenue base in a sensible manner. This gives Intel the opportunity to marry Puma chips with its own Atom processors to create a complete solution. The synergies in this deal could be a tremendous boost to the Atom project.
N.B.: TI's Puma is not to be confused with the Puma platform from Advanced Micro Devices (NYSE: AMD), where the name is used for a laptop chipset. The day that AMD sells a useful unit to Intel would be the day Peyton Manning signs with the Patriots -- ain't gonna happen, folks.
