Print 17 comment(s) - last by Frallan.. on May 4 at 4:34 AM

Oy vey!

Bitboys Oy. That's a name that I haven't heard for quite some time. The masters of all things vapor back in the early days of Rendition, PowerVR and 3Dfx has been acquired by ATI for $44 million dollars.

Bitboys technology will be folded into ATI's Handheld Business Unit where its expertise in power management will be used to produce powerful and efficient graphics solutions for mobile devices. The mobile handset market continues to explode and the demand for multimedia content on the go doesn't show any sign of waning. From ATI's press release:

"ATI gives us what we need to reach the next level," said Mikko Saari, CEO, Bitboys. "Their market presence and ability to sell our products as part of a complete multimedia lineup will prove incredibly valuable to us. It's a classic win-win, realizing value for both companies."

"Bitboys dovetails into ATI perfectly," said Paul Dal Santo, GM of ATI's Handheld Business Unit. "Handsets are transitioning to hardware acceleration for graphics and multimedia, and the Bitboys team will play a critical role as we drive this key inflection point to make ATI the platform of choice for content providers."

We recently reported that ATI is planning to invest some $50 million into an R&D center in India, that will be focusing on developing graphics for next generation hand helds. Considering that the market is exploding, and that Bitboys was working heavily in the mobile market, the acquisition comes at just the right time.

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This is great news for ATI!!!
By josmala on 5/3/2006 7:00:22 AM , Rating: 2
Quote from previous press release in bitboys site....

"Bitboys has been steadily growing and profitable since 2002, when the company shifted its strategy to developing graphics hardware solutions for volume-market mobile devices."

Which means that bitboys have produced something that made them profit. Its probably being subcontractor for graphical capabilities on mobile phones.

"Graphics processing is one of the most important growth areas in mobile industry. As the only vendor that provides graphics solutions specifically for volume-market mobile devices, Bitboys has already achieved a strong position in the market. Nokia Growth Partners made this investment to ensure Bitboys has adequate financial and human resources for continued successful growth. As a key strategic graphics partner Bitboys provides Nokia with early access to best-of-breed technology in mobile graphics processing," said Markus Salolainen, General Partner, Nokia Growth Partners."

If I'd speculate the bitboys have good position in nokia subcontracting, and nokia is over third of mobile phone market. So basicly, ATI bought 1/3rd market share in area they are targetting for growth. Also they wan't to have developement center in Finland close to Nokias research centers...

Bitboys chose not to enter the mainstream graphics after T&L become major component and they realized they couldn't keep up with nVidia there, but go for niche that ATI is targetting right now for growth.
ATI probably made great deal with buying bitboys. They bougth a big customer and some infrastructure to keep that big customer as a customer.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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