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S3 readies graphics chips hive-off

Several offers on the table

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It's a very short press release -- and beggars many more questions than it answers. But here it is, in full. "S3 announced today that it is in discussions with and has received term sheets from several companies relating to the separation of S3's graphics chip business from the remainder of its businesses. "The company stated today that it is assessing all opportunities and is committed to choosing a path that will take into account the interests of its stockholders, customers and employees. "The company had no further comments with respect to these matters. There can be no assurance that any transaction will result from the discussions." So where would this leave S3? Effectively, it would turn into Diamond (bought last year), while another company would be S3. In other words, Diamond becomes Diamond again, and S3 becomes, well, S3 again. ®

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