Feeds

S3 buys Diamond Multimedia

Multimedia giants R'US

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

S3 has turned predator with the $175 million share acquisition of Diamond Multimedia. Well, well, well. That will teach us to listen to our California chip friends, who swore blind that S3 was being stalked by its smaller rival 3dfx. (We still think this is, or rather was, true). With Diamond, S3 is now far too big for 3dfx to contemplate a hostile bid. This gives it a ready-made board supplier to play with, just like 3dfx (which bought STB last year). More importantly Diamond has a huge retail presence, to back up its OEM business. S3 hopes to retain other retail board customers -- the company has learnt from what we consider to be 3dfx's tactical error following the STB buy. Remember, 3dfx said it would junk other retail board makers, and then considered backtracking (because STB's retail channel was not strong enough in Europe). In the event, 3dfx is ploughing on by itself Through Diamond, S3 also becomes an all-round multimedia player -- Diamond makes the Rio Internet music player, modems and sound cards, as well as graphics boards. S3 has turned itself around nicely in recent months. It's got a new chip, the S4, that OEMs actually want to buy; it's got a sweet cross-patent deal with Intel; and it's got cash -- about $120 million, and $600 million worth of United Microelectronics stock. Even if it doesn't sell the stock in one go (bad for tax reasons as well as UMC share price), S3 has some hefty collateral at its disposal. S3 shareholders will hope the company will spend its UMC paper mountain wisely. The Diamond buy looks a useful first step. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.