Feeds

Shareholders say ‘yes’ to S3, Diamond merger

Company splits into separate business units -- primed for sell-off?

  • alert
  • submit to reddit

Build a business case: developing custom apps

The proposed merger between S3 and Diamond Multimedia will now go ahead after investors in both companies voted this week to support the deal. And with the deal effectively done and dusted, S3 revealed its post-merger structure. The company will split into four independent divisions. Multimedia will take charge of S3's 3D graphics acceleration technology and Diamond's audio products, and focus on consumer -- and presumably OEM -- markets. Diamond's high-end graphics products, most notably its FireGL 1, will form the core offerings of the new Professional Graphics subsidiary. Diamond's RioPort subsidiary will continue as a separate business unit operating in the digital music space. Interestingly, it will not take on the Rio digital music player -- that will fall into the Communications division's remit, which also includes Diamond's modem and home networking lines. Breaking S3's business down into separate business units, all in different geographical locations, suggests that S3 is ultimately planning to sell some of them off. Certainly, it's a darn sight easier to flog off, say, the Professional Graphics business, to be based in Germany, if it's a self-contained unit. It will also make simpler to spin off RioPort through an IPO. It's not known if S3 wants to divest itself of any of these units -- most likely it will see how the combined company develops before making any such moves, but whether it already has spin-off plans or not, it's ready for them structurally. Meanwhile, it's not yet clear whether the Diamond Multimedia brand will be retained in the medium term -- for now, it will have to be; there's too much kit out there in Diamond-branded boxes, and the combined operation is for now retaining Diamond's URL for its e-commerce efforts. ®

Boost IT visibility and business value

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.