S3, the company with mighty patents, is set to be taken over by 3Dfx, reliable sources told us today. When we asked where the money could come from, the source told us the bid will be funded by a consortium dead interested in all of the S3 patents. If the reports are true, it would be a hostile bid. S3 is being wooed by Intel and yesterday received a $42 million bonus from UMC for certain licence agreements. Our sources say that there is more money where that came from. And to watch that space. ®