Feeds

3dfx, S3 merger talks still on

Major rumour, yes -- but it can't yet be ruled out...

  • alert
  • submit to reddit

Build a business case: developing custom apps

Register sources reckon 3dfx's subtle plan to take control of the 3D graphics industry and more is still a runner. The plan, which emerged back in June, has 3dfx launching a bid to buy rival 3D graphics specialist S3. Since details of the scheme emerged, of course, S3 announced its decision to buy Diamond Multimedia through a $175 million share trade. The Diamond acquisition, which still needs shareholder approval, would give S3 access to Diamond's home networking, digital music technology and, more importantly, its board manufacturing operation. The S3/Diamond deal is due to go before Diamond shareholders on 20 September. The Diamond board has recommended the deal. That seemed to be that, as far as 3dfx's plan went, but according to our source, talks between the two companies have continued despite -- or, more likely, because of -- S3's Diamond acquisition. According to our source, the two companies have agreed in principle to merge -- the haggling centres on the financial details and the make up of the merged operation's management structure. The financial aspect is probably the most important sticking point. 3dfx's results haven't been too hot of late, whereas S3 is clearly moving on and up. That suggests that if the plan goes ahead, it will have to be a true combination of interests rather than a takeover by any other name. Successful negotiations would lead to a business that combined two key 3D graphics players with Diamond's broader consumer product portfolio generating a powerful force in the PC add-in market. Both S3 and 3dfx are desperate to wrest leadership of the graphics market from ATI -- and together they might well be able to do so. S3 brings some powerful technologies to the table -- it's texture compression facility, for one -- which 3dfx brings the best-known graphics brandname: Voodoo. Of course, all this remains 85 per cent rumour -- even if the two companies are talking (and well they might), that doesn't guarantee the outcome would be a merger -- and some salt may need to be pinched here. However, the prospects for both businesses if a merger did go ahead are such that talks cannot yet be ruled out. ® Related Stories Dead Dell deal costs ATI dearly Nvidia unveils '256-CPU Cray' GeForce 3D chip S3 unveils Savage 2000 3dfx stock drops on ongoing losses

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
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
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
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

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.