If the deal works out as planned, NXP could end up with a substantial return on its investment in Trident, a digital IC vendor. In fact, if Trident shares double or triple in value, NXP could walk away with a substantial payment once it can unload its 60 percent stake in the new joint venture.

The prognosis looks good already. Within hours of announcing its intention to buy shares in Trident and contribute its TV systems and digital set-top box units to the company for a majority stake, NXP was already ahead, at least on paper.

Trident's shares jumped more than 15 percent by the end of regular trading on Monday (Oct. 5) following the announcement of the transaction and continued to rise in after hour trading to reach about $2.79, up approximately 20 percent from the previous closing price on Oct. 2.

If Trident's market value continues to rise to exceed NXP's purchase price of $4.50 over the next two years, the company would be able to sell its stake for a substantial profit.

Of course, the reverse is also possible. By paying such a hefty premium—about 93 percent—to purchase Trident stocks, NXP's reputation and bank account could take a hit if its new joint venture fails to perform to expectation.

It's highly unlikely NXP will hold Trident shares longer than it needs to, however. The company needs any profits from the deal to help reduce a boatload of long-term debts and fund new technology acquisitions in areas aims to expand.

However, the terms of the transaction stipulates "the shares being issued to NXP would be subject to a lock-up for two years," meaning the chip maker would not be able to sell its holding until sometime in 2012 if the deal closes as expected next year.

In addition to the possible future hefty payoff, why else would NXP be doing this deal? First, unloading the TV system and digital set-top box business gives the company a chance to exit a business in which it may be too small to be an effective competitor.

Second, NXP urgently needs to continue narrowing the focus of its operations to further reduce operating costs and redirect resources to areas where it has market leading positions. Additionally, one of NXP's short-term goals is the reduction of manufacturing expenses and the fewer businesses the company needs to support in-house, the easier achieving that objective would be.

Finally, NXP CEO Clemmer is a man on a mission. An executive whose root is in venture financing, Clemmer is not interested in merely managing the business for growth but for efficiency and profit maximization.

The private equity investors who grabbed 80 percent of NXP from Philips Electronics are waiting for their payday and the faster Clemmer can rationalize operations and return the company to profitability, the earlier they can float an initial public offering and rake in some profit.

The transfer of the TV system and digital IC units to Trident puts Clemmer closer to achieving his goals, whatever they really are.