Wednesday, March 29, 2000

S3 to Drop Graphic Chip Business? -- 10:41 am CST, Update by A.T. Hun

Voodoo Extreme linked to this press release stating the following:

Multimedia software maker S3 Inc. (NasdaqNM:SIII - news) said on Wednesday it was in discussions to sell or spin off its graphics chip business.

The company offered no additional comment.

In its fourth quarter earnings report in January, its chief executive Ken Potashner said, "Although we continue to make gains in our graphics business, we believe that our growth businesses focusing on Internet appliances and home networking have significant unrealized value."

Seems to me that NVIDIA would be a logical suitor here. Lord knows they've got the cash.

The Master comments: Man, I remember when you COULDN'T buy a prebuilt PC without an S3 video chipset. They really lost their edge in the last couple of years, even with the Savage chipsets. What I don't understand from the press release is this whole "unrealized value" crap in their other markets. Does anyone else notice the markets they intend to "realize" are the markets that Intel is walking into? I think we'll see S3 bankrupt or bought out in the next 3 years.

News for 03/29/2000

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