Feeds

S3 buys Diamond Multimedia

Multimedia giants R'US

  • alert
  • submit to reddit

Top 10 endpoint backup mistakes

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. ®

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?