Feeds

S3 buys Diamond Multimedia

Multimedia giants R'US

  • alert
  • submit to reddit

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.