LSI Logic Picks up C-Cube

What do you get when you cross a developer of custom chips with one that develops DVD technology? Most likely, you get a fancy set top box. LSI Logic has revealed that it has acquired majority ownership of C-Cube Microsystems for around $850 million. The acquisition was completed through an exchange offer by its wholly owned subsidiary, Clover Acquisition Corp. for all of the outstanding shares of common stock of C-Cube. LSI says the acquisition will allow it to compete in cable modem, cable set-top box, DVD, and other markets. In return, C-Cube will have access to LSI's technology and engineering resources as well as global sales channels.