Via takes further stake in S3

Not quite a takeover... yet

Taiwanese chipset and microprocessor vendor Via has increased its stake in graphics company S3. That follows rumours a few days ago that S3 was the target of Via's attentions. Via has bought 10.8 million shares of S3 at $13.50 a share, with the ostensible reason being given that the deal is to "strengthen the partnership and collaboration" between the two companies. The Via stake in S3 now amounts to 15 per cent. Said Ken Potashner, CEO of S3: "The technology and IP available between our two companies have positioned us to aggressively compete in the value PC segment through the strategy of integrating our technologies." Just a few days ago, Intel agreed to license all of 3D Labs patent portfolio. S3 also has a cross-licensing agreement with Intel and the equity investment by Via is bound to further aggravate the chip giant. Intel has already embarked on a series of legal actions against Via and some of its subsidiaries, claiming that it has infringed some of its patents. ® See also Nvidia sues S3 in patent clash Intel grabs 3D Labs patent portfolio Via-S3 deal would make Intel dead grumpy

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