Entropic Communications

Entropic Communications was a United States semiconductor company focused on the connected-home and broadband-access markets. Founded in 2001 and headquartered in San Diego, California, it developed integrated circuits and platform software for service-provider equipment, including digital television set-top boxes, home networking systems, broadband-access infrastructure, and direct-broadcast-satellite equipment. The company became especially associated with Multimedia over Coax Alliance (MoCA) technology. Its MoCA chipsets enabled high-speed networking over coaxial cable already installed in homes, allowing pay-television and broadband operators to connect set-top boxes, gateways, routers, and other devices without requiring new Ethernet cabling. Entropic promoted successive MoCA generations, including MoCA 1.0, 1.1, and 2.0, and its technology was adopted by major North American service providers such as Comcast, Cox Communications, DIRECTV, Time Warner Cable, and Verizon. The company also supplied related products to European operators, including UPC and Liberty Global. Its set-top-box system-on-chip portfolio served satellite, terrestrial, cable, and Internet-protocol television applications. These products combined functions such as television processing, connectivity, media processing, and modem or interface support into semiconductor platforms intended for consumer-premises equipment manufacturers and pay-television operators. Entropic described itself as a fabless semiconductor company, meaning that it designed chips and relied on external manufacturing partners rather than operating its own fabrication plants. Entropic broadened its portfolio through acquisitions and selected-asset purchases. The 2007 acquisition of RF Magic added direct-broadcast-satellite outdoor-unit technology. In 2012, purchases of selected assets from Trident Microsystems and PLX Technology expanded its set-top-box and satellite-channel-stacking capabilities. In 2013, Entropic acquired assets from Mobius Semiconductor related to analog and mixed-signal technologies, including converters, phase-locked loops, serializer/deserializer technology, and associated intellectual property. The business expanded internationally during the 2000s and 2010s. It opened an Asia regional headquarters in Hong Kong in 2005, began operations in South Korea in 2010, and established operations in Japan in 2011. Its c.LINK product family targeted Ethernet-over-Coax broadband access, particularly deployments in China and applications involving single-family homes and multiple-dwelling units. Entropic became a public company through an initial public offering completed on December 7, 2007, when its shares began trading on Nasdaq under the symbol ENTR. The company later faced leadership disruption after former chief executive Patrick Henry became involved in a criminal case arising from an incident at the Sundance Film Festival. In 2014 the board initiated a leadership transition, with Ted Tewksbury becoming interim president and chief executive officer after Henry's resignation from the role. In September 2014, Entropic retained Barclays to evaluate strategic alternatives, including a possible sale. MaxLinear agreed to acquire the company, and the transaction closed on February 3, 2015, for total consideration of approximately $287 million. Following the acquisition, Entropic ceased operating as an independent public company and its technologies and business activities were incorporated into MaxLinear's semiconductor portfolio.

Entropic Communications was established in 2001 in San Diego as a fabless semiconductor company serving the emerging connected-home market. Its business model centered on designing specialized integrated circuits and software for cable, satellite, terrestrial television, IPTV, and broadband equipment while using third-party manufacturers for chip production. A defining part of Entropic's history was its development of MoCA home-networking technology. Introduced commercially in 2004, MoCA used coaxial cable as a high-speed residential networking medium. This was strategically important to pay-television and broadband operators because coaxial wiring was already present in many homes, enabling multi-room video and connected-home services without extensive rewiring. Entropic subsequently supported multiple MoCA generations, including versions 1.0, 1.1, and 2.0. The company expanded its geographic presence as its operator and equipment-maker relationships grew. It opened an Asia regional headquarters in Hong Kong in 2005, began operations in South Korea in 2010, and added Japan operations in 2011. Its customer and deployment footprint included North American operators such as Comcast, Cox Communications, DIRECTV, Time Warner Cable, and Verizon, along with European activity through operators including UPC and Liberty Global. Entropic expanded beyond home networking into satellite signal distribution, broadband access, and set-top-box processing. The 2007 acquisition of RF Magic supplied direct-broadcast-satellite outdoor-unit technology. These capabilities included band-translation switches, channel-stacking switches, and digital channel-stacking switches designed to simplify the distribution of signals from multiple satellites over a single cable. Such technology was associated with operators including DIRECTV, DISH Network, Canal Digital, and Sky Italia. The company also developed c.LINK Ethernet-over-Coax products for broadband-access deployments. These systems addressed the final few hundred meters between network infrastructure and homes or multiple-dwelling units, with particular emphasis on China and the country's Next Generation Broadband initiative. Its set-top-box portfolio covered satellite, terrestrial, cable, and IPTV systems and included SoCs, DOCSIS modems, interface devices, and media processors. Entropic became publicly traded on Nasdaq after completing its IPO on December 7, 2007. During the following years it pursued portfolio expansion through asset acquisitions. In 2012 it acquired selected set-top-box-related assets from Trident Microsystems and selected satellite intellectual property and technologies from PLX Technology. In 2013 it acquired Mobius Semiconductor assets involving analog and mixed-signal components and related intellectual property. The company encountered executive and reputational difficulties in 2014. Former chief executive Patrick Henry faced charges connected to an altercation involving reality television personality Ariane Bellamar at the Sundance Film Festival. Two misdemeanor charges were dropped, while another charge was reduced and ultimately resulted in a conviction. Henry received a $400 fine, 40 hours of community service, and orders for alcohol and anger-management assessment. He was not immediately terminated, but the company later implemented a leadership transition. On November 10, 2014, the board identified the transition as appropriate, and Ted Tewksbury became interim president and chief executive officer. Henry resigned as CEO in November 2014. In September 2014, Entropic engaged Barclays to examine a possible sale or other strategic alternatives. MaxLinear subsequently agreed to acquire the company, completing the transaction on February 3, 2015, for total consideration of approximately $287 million. The acquisition ended Entropic's status as an independent listed company and brought its connected-home and broadband semiconductor capabilities into MaxLinear.

• 2015

  Acquired by MaxLinear

  [1]Entropic Communicationsen.wikipedia.org

  MaxLinear completed the acquisition of Entropic for approximately $287 million in total consideration.

• 2014

  Leadership transition and strategic review

  [1]Entropic Communicationsen.wikipedia.org

  The company appointed Ted Tewksbury interim CEO after Patrick Henry's resignation and engaged Barclays to explore strategic alternatives.

• 2013

  Mobius Semiconductor asset acquisition

  [1]Entropic Communicationsen.wikipedia.org

  Entropic acquired assets and intellectual property from Mobius Semiconductor covering analog and mixed-signal technologies.

• 2012

  Trident and PLX asset acquisitions

  [1]Entropic Communicationsen.wikipedia.org

  Selected assets from Trident Microsystems and PLX Technology expanded Entropic's set-top-box, satellite, and digital channel-stacking capabilities.

• 2011

  Japan operations established

  [1]Entropic Communicationsen.wikipedia.org

  Entropic began operating in Japan.

• 2010

  South Korea operations established

  [1]Entropic Communicationsen.wikipedia.org

  Entropic began operating in South Korea.

• 2007

  RF Magic acquisition

  [1]Entropic Communicationsen.wikipedia.org

  Entropic acquired RF Magic, adding direct-broadcast-satellite outdoor-unit technology and products.

• 2007

  Initial public offering

  [1]Entropic Communicationsen.wikipedia.org

  Entropic completed its IPO on December 7 and began trading on Nasdaq under the symbol ENTR.

• 2005

  Asia regional headquarters opened

  [1]Entropic Communicationsen.wikipedia.org

  The company opened an Asia regional headquarters in Hong Kong as part of its international expansion.

• 2004

  MoCA home-networking technology introduced

  [1]Entropic Communicationsen.wikipedia.org

  Entropic introduced a chipset based on Multimedia over Coax Alliance technology, allowing homes to use existing coaxial cabling for networking.

• 2001

  Company founded

  [1]Entropic Communicationsen.wikipedia.org

  Entropic Communications was founded in San Diego, California, as a fabless semiconductor developer for connected-home and broadband applications.

Entropic positioned itself as a provider of semiconductor platforms that helped pay-television operators and broadband providers deliver connected-home services over existing coaxial infrastructure. Its differentiation centered on integrating television processing, home networking, satellite signal distribution, and broadband-access functions into chips and software suitable for large-scale service-provider deployments.

• Home networking chipsets · 2004

  MoCA Home Networking

  Entropic's MoCA products enabled networking over coaxial cable in residential environments. The technology supported connected set-top boxes, gateways, routers, and multi-room entertainment services while using wiring already installed for cable or satellite television. The company announced and supplied MoCA 1.0, 1.1, and 2.0 solutions, with deployments among major North American and European service providers.

• Digital television semiconductors

  Set-top-box SoC Solutions

  This portfolio supplied system-on-chip and related semiconductor platforms for satellite, terrestrial, cable, and IPTV set-top boxes. It included television-processing functions as well as associated media processors, interfaces, and modem capabilities. The products were intended for service providers and equipment manufacturers seeking integrated platforms for digital television receivers and connected-home devices.

• Ethernet-over-Coax broadband access

  c.LINK

  The c.LINK family delivered Ethernet connectivity over coaxial infrastructure for the final few hundred meters between broadband networks and homes or multiple-dwelling units. It was particularly associated with deployments in China and with operator efforts connected to the Next Generation Broadband initiative. The approach was designed to reuse existing cabling while extending broadband access to subscribers.

• Satellite signal distribution semiconductors · 2007

  DBS ODU Solutions

  Entropic's direct-broadcast-satellite outdoor-unit products were designed to simplify reception of multiple channels from multiple satellites through a single cable. The portfolio included band-translation switches, channel-stacking switches, and digital channel-stacking switch technology. These components supported satellite operator installation and distribution architectures.

• Analog and mixed-signal semiconductors · 2013

  Analog and Mixed-Signal Solutions

  Through the 2013 Mobius Semiconductor asset transaction, Entropic added technology involving analog-to-digital converters, digital-to-analog converters, analog and digital phase-locked loops, serializer/deserializer functions, and related proprietary intellectual property.

• 2014

  Patrick Henry Sundance assault case

  Former Entropic chief executive Patrick Henry was charged after an altercation at the Sundance Film Festival involving Ariane Bellamar. Two misdemeanor charges were dropped, while a remaining assault charge was reduced to an infraction and resulted in a conviction. Henry received a $400 fine, 40 hours of community service, and orders for alcohol and anger-management assessment. The matter was followed by a later leadership transition.

  Source

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• 2015

  Acquisition by MaxLinearM&A

  Background

  Following the strategic review, Entropic pursued a transaction that would combine its connected-home semiconductor portfolio with MaxLinear's communications-chip business.

  Action taken

  MaxLinear completed the acquisition on February 3, 2015, for total consideration of approximately $287 million.

  Aftermath

  Entropic ceased to operate as an independent listed company and its technologies became part of MaxLinear.

  Total acquisition consideration. $287 million (Transaction completed February 3, 2015)

  Source

• 2014

  Strategic alternatives reviewStrategy

  Background

  Entropic faced leadership changes and evaluated options for the future of its semiconductor business.

  Action taken

  The company hired Barclays to explore strategic alternatives, including a potential sale.

  Aftermath

  The review led to an agreement for MaxLinear to acquire Entropic.

  Source

• 2012

  Expansion through Trident and PLX technology assetsM&A

  Background

  Entropic sought to broaden its connected-home portfolio beyond MoCA networking into set-top-box processing and satellite distribution.

  Action taken

  The company acquired selected Trident Microsystems set-top-box assets and selected PLX Technology satellite intellectual property and related technologies.

  Aftermath

  The transactions expanded Entropic's digital television and digital channel-stacking capabilities.

  Source

• 2004

  Launch of MoCA home-networking chipsetProduct launch

  Background

  Residential operators needed a way to distribute data and entertainment services across existing home wiring without installing new Ethernet cabling.

  Action taken

  Entropic introduced a chipset using coaxial cable as a home-networking medium and later supported additional MoCA generations.

  Aftermath

  MoCA became a central part of Entropic's connected-home positioning and was deployed by multiple major service providers.

  Source

1. 1Entropic Communicationsen.wikipedia.org