Nvidia today announced that it has signed a definitive agreement to acquire San Jose, CA-based PortalPlayer, Inc. Founded in 1999, PortalPlayer makes the media chips that are in most iPods (though Samsung now makes the iPod Nano’s chip). The $357 million price includes $196 million in cash reserves held by PortalPlayer which makes the real price tag $161 million.

The acquisition of PortalPlayer is should accelerate Nvidia in it’s ongoing handheld product strategy and development. Nvidia’s handheld technology, which combines high-quality graphics, TV, and video with low power and a small footprint, can be found in many portable media devices, including phones from Motorola, Samsung, Kyocera, HTC, and Sony Ericsson. View the press release

Nvidia today announced that it has signed a definitive agreement to acquire San Jose, CA-based PortalPlayer, Inc. Founded in 1999, PortalPlayer makes the media chips that are in most iPods (though Samsung now makes the iPod Nano’s chip). The $357 million price includes $196 million in cash reserves held by PortalPlayer which makes the real price tag $161 million.

The acquisition of PortalPlayer is should accelerate Nvidia in it’s ongoing handheld product strategy and development. Nvidia’s handheld technology, which combines high-quality graphics, TV, and video with low power and a small footprint, can be found in many portable media devices, including phones from Motorola, Samsung, Kyocera, HTC, and Sony Ericsson. View the press release