MediaTek bids for MStar
Mediatek is moving to acquire its Taiwanese rival MStar.
“Facing intense worldwide competition and fast-changing market dynamics, we believe that the combined company will be in a strong position to compete and will further elevate MediaTek’s global competitiveness,” says MediaTek Chairman M.K. Tsai.
MStar makes LCD ICs, WiFi chips, fingerprint recognition ICs, GPS chips, set-top-box ICs, RFID ICs and mobile phone chips. It has a design centre in Cambridge, and IPO’s in 2010 raising US $282m in the Taiwan stock exchange’s biggest IPO of 2010.
In April, wireless chip-set maker MediaTek bought eight year-old Coresonic of Sweden which develops DSP cores for wireless baseband applications.
Coresonic, a VC-backed spin-out from LinkopingUniversity, describes its DSP core as “a new type of switch-based DSP capable of massive OFDM symbol processing, aimed at LTE, TD-LTE, LTE-A, HSPA+, WLAN, DVB-T/S/C, T-DMB, ISDB-T, ATSC, DAB, DAB+, DMB and more
MediaTek is offering 0.794 of a MediaTek share plus a Taiwan $ for every MStar share.
MediaTek hopes to acquire between 42% and 49% of MStar in this way and then look to take a controlling interest in MStar at a later date.