Intel (NASDAQ:INTC) acquires ZiiLabs Limited for US$30 million


Intel Corporation (NASDAQ:INTC) signed a US$50 million agreement with Singapore-based Creative Technology. Pursuant to the deal, the chip giant is set to pay US$20 million to license certain technologies concerning high-performance graphics from Creative’s ZiiLabs. Creative is also going to receive US$30 million for selling its UK subsidiary, ZiiLabs Limited, to Intel Corporation (INTC).

The UK subsidiary was partially owned by graphics firm 3DLabs, which Creative acquired in 2002 in a deal valued at US$170 million. The step was taken by Creative to challenge PC consumer graphics stalwarts, ATI and Nvidia, by combining 3DLabs’ expertise in professional-grade graphics with Creative’s multimedia business.

Renamed ZiiLabs after the takeover, the subsidiary has been focusing on Creative’s ARM-based StemCell processor. Despite the sale, Creative keeps rights of the StemCell chip and related technologies, and will keep selling its ZMS-branded processors to interested parties

See latest price movement of this stock

Intel shares traded up 0.30% during last trading session, finishing at $20.25 a piece. The share price of INTC floated yesterday in a range of $19.73 to $20.45. The boost gave the company a market-cap of over $100.76 billion.

How to determine strength or weakness after that shift in price?

The stock, after recent close, is -7.90% down their SMA 50 and 29.78% off the 52-week high. The worst hit in its 52 week range is $19.73 per share, with $29.27 as its 52 week best price that compares with a latest closing price of $20.25. Its latest closing price has a distance of -4.07% from SMA20 and is -19.33% down than SMA200.

What are the effects on the stock performance?

With recent gain, the year-to-date (YTD) performance reflected a -13.61% fall below last year. During the past month the stock dropped -6.12%, bringing three-month performance to -22.29% and six-month performance to -20.84%.

How it participates in the overall market?

Historically, the volatility of this stock is about 2.72% a week and 2.09% a month, but keep in mind volatility keeps on changing. For this company, beta value at 1.08 represents it is more volatile to the shift in the market.

Do you still seek better idea? Look at analyst opinion

The average analysts that follow this company have a ‘Hold’ rating on this stock, according to Zacks Investment Research. Of 38 analysts, 23 maintain that rating, 1 set the stock as buy, 1 give underperform rating, 11 set the stock as Strong Buy and 2 suggests selling.

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