[opendtv] Re: News: DTV Boxes Could Cost $1 Billion

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 29 Jul 2004 10:08:49 -0400

Tom Barry wrote:

> That is why I wrote there might be Linx trouble back when they were
> purchased.  I don't remember the figure but the purchase price seemed
> very low at the time for someone with a new technology that
> might have
> given DTV reception to Mark's apartment.  That plum belongs to Zenith
> now.  I'm still guessing there is trouble in Linxville though
> I have no idea what.

Me neither. But isn't that what a lot of startup companies do these
days? They get some niche product that's very clever, only to sell
out to a bigger company? It seems to be the goal all along, to sell
to a big guy.

The price was $26M. Don't know if that is considered low or not for
this product category.

As far as I'm concerned, Linx gets a lot of credit for proving that this
could be done. LG will come to market first, but in my mind they will
always be the second guys to achieve a viable design. I'm sure plenty
of others will follow, with marginal improvements on these designs.

The press release is below.



0409 - 05/14/04

Micronas Expands Into HDTV Market With Acquisition of LINX Electronics

Micronas To Provide Best-In-Class ATSC Receiver Technology

Zurich, Switzerland, May 14, 2004 - Micronas today announced that it
has signed an agreement to acquire LINX Electronics, Inc., a fabless
semiconductor company that develops innovative digital television
solutions for improved reception of high-definition television (HDTV)
signals. This transaction, which is expected to be completed in June
2004, will enable Micronas to further expand its comprehensive TV
system solutions portfolio.

The purchase price of approximately USD 26 million will be paid in
cash and Micronas' shares. Chicago-based LINX Electronics employs
a highly acclaimed HDTV technology team of about 20 engineers and
brings complementary technology to Micronas. The purchase includes
all development activities and patents held by LINX Electronics.

"With this acquisition we have taken another decisive step forward
in our digital TV business, strengthening our position in the TV
market and providing increased value and services for our
customers," said Micronas' vice president consumer products unit,
Hans-Juergen D=E9sor. "Our existing strength in Digital Video
Broadcast (DVB) technology, combined with the expertise gained with
this acquisition, puts us in the excellent position to shape the
era of global migration from analog to digital TV."

"HDTV is a reality now! Our technology enables an exciting new TV
experience," explained Wayne Li, co-founder of LINX Electronics.
"As part of the Micronas Group, we will be able to better serve
these markets by offering manufacturers innovative and
comprehensive system solutions for their future applications."

Since the late 1980s, the global economic superpowers have been in
a race to bring digital TV to the consumer market. Three
international standards have been created: US-ATSC (Advanced
Television Systems Committee), Europe-DVB (Digital Video
Broadcast), and Japan-ISDB (Integrated Services Digital
Broadcasting). The US is currently the largest HDTV market, with
deployment accelerating due to a phase-in plan mandated by the US
Federal Communications Commission (FCC) requiring TV manufacturers
to integrate digital TV tuners into nearly all their TV products
by 2007. LINX Electronics has developed a breakthrough ATSC
compliant receiver technology that delivers superior reception to
more consumers. Typical applications include HDTVs, set-top boxes,
personal video recorders (PVRs), DVD recorders as well as PC tuner
cards. LINX Electronics has a solid background in addressing new
digital TV broadcasting formats.

Safe Harbor Statement: This press release contains forward-looking
statements based on current expectations or beliefs, as well as a
number of assumptions about future events. These statements and all
other statements that are not historical facts are subject to
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
The reader is cautioned not to put undue reliance on these
forward-looking statements, which are not a guarantee of future
performance and are subject to a number of uncertainties and other
factors, many of which are outside the control of LINX and Micronas.
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