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So does this mean the Rio branded players will still be made by D&M but with different people or is SigmaTel taking over the entire Rio name ?

The press release stated that Sigmatel are getting the engineers and IP - not the name, not the player designs and not any inventory. I daresay D&M will hawk the rest of it to a random CM, although restoring value to that brand would be quite an undertaking!

Sigmatel is a pretty big player right now - something like 80% of flash players in the world use their chips, and no doubt they want the hard drive market now. The empeg codebase will get a very wide audience which will be nice, but I fear they are a supplier to a commodity market and I won't hold my breath to see the wonderful innovations I know the guys in Cambridge are capable of.

Rob