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VIA Selling S3 Graphics to HTC

By - Source: VIA Technologies PR | B 27 comments

VIA has signed a deal to sell off S3 Graphics to smartphone manufacturer HTC for $300 Million

Wednesday Taiwan-based x86 processor platform developer VIA Technologies said that it signed a definitive agreement to sell all of its shareholding in S3 Graphics to smartphone manufacturer HTC.

The company originally acquired S3 Graphics back in 2001 with the intention to accelerate integration of graphics capabilities with its processor and chipset products. But by 2005, S3 Graphics was unable to acquire the funds it needed to stay afloat (aka undercapitalized), thus private investment company WTI Investment International, Ltd. (“WTI”) stepped in as an additional investor to help fund the operations and R&D initiatives. Cher Wang, Chairman of VIA, is a significant shareholder of WTI.

"Under terms of the agreement with HTC, total consideration for all outstanding shares of S3 Graphics will be US$300 million," VIA said in an announcement. "Of which, VIA will receive US$147 million; and WTI will receive US$153 million. VIA will recognize a capital gain of US$ $37 million and paid-in-capital of US$115 million in this transaction."

"The transaction would allow VIA to monetize a portion of its rich IP portfolio, yet retain its graphics capabilities to support the development and sale of its processors and chipsets," said Tzu-mu Lin, Senior Vice President and Board Director of VIA. "We wish to thank WTI for its capital contribution to support S3 Graphics since 2005."

Although the proposed transaction has been given the green light by VIA, WTI and HTC board of directors, it will still be subject to regulatory approvals and "other customary conditions." The deal is expected to be sealed before the end of 2011.

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Top Comments
  • 16 Hide
    razor512 , July 7, 2011 8:07 AM
    s3 graphics mostly sucked so via didn't need it

    I had a old motherboard with s3 graphics, I had to run notepad on low settings.
Other Comments
  • -7 Hide
    mehrdad_ati , July 7, 2011 7:18 AM
  • 1 Hide
    fyasko , July 7, 2011 7:41 AM
    so via never benefited or saw any of s3's IP?
  • Display all 27 comments.
  • 16 Hide
    razor512 , July 7, 2011 8:07 AM
    s3 graphics mostly sucked so via didn't need it

    I had a old motherboard with s3 graphics, I had to run notepad on low settings.
  • 1 Hide
    vaughn2k , July 7, 2011 8:10 AM

    Imageon was discontinued, and not sold...
  • 1 Hide
    eddieroolz , July 7, 2011 8:25 AM
    Cheap price for a chip company, if you'd ask me.
  • -8 Hide
    brandonjclark , July 7, 2011 9:02 AM
    Notepad joke fail....
  • 3 Hide
    Anonymous , July 7, 2011 10:34 AM
    S3 had some good technologies for the time, it surpassed even some Nvidia cards in 1999-2000. Hope to see some development now!
  • 8 Hide
    neiroatopelcc , July 7, 2011 10:36 AM
    The S3 chips weren't all that bad. Matrox was the undisputed leader, but S3 was a splendid option for anyone still sitting with old isa cards. They lost the fight when the riva and tnt cards arrived, but not before then.
  • -3 Hide
    f-gomes , July 7, 2011 11:12 AM
  • 6 Hide
    lowenz , July 7, 2011 11:50 AM
    I still have a PCI Virge with 4 MB :D 
  • 1 Hide
    feeddagoat , July 7, 2011 11:55 AM
    Wonder if Nvidia will see this as a chance to make a deal with VIA especially if APU's take off
  • -1 Hide
    scrumworks , July 7, 2011 12:04 PM

    Indeed. Two turkeys do not make an eagle.
  • -2 Hide
    nebun , July 7, 2011 12:15 PM
    another one bites the dust....maybe it's a good much crap out there
  • 6 Hide
    spookyman , July 7, 2011 1:29 PM
    S3 lost the fight when 3Dfx graphics came out.
  • 3 Hide
    palladin9479 , July 7, 2011 1:41 PM
    S3 actually made some good chips during the TNT times, the Savage 4 was decent with METAL and S3 Texture Compression. Very few games supported METAL though, they opted for the 3DFX Glide and OpenGL standard.

    Overall they were a decent "budget" vender back in the day with really good 2D acceleration. Via only bought them for their 2D acceleration tech so that Via could produce all-in-one boards. Same reason they acquired Cyrix. These days none of that is needed so Via just shedding it and letting HTC use it for smartphone / tablet integration.

    And yes I would absolutely love to see a Via Nano x2 + Tegra type integrated product.
  • 2 Hide
    neiroatopelcc , July 7, 2011 1:46 PM
    spookymanS3 lost the fight when 3Dfx graphics came out.

    not really, cause at the beginning 3dfx couldn't stand alone. It needed a 2d card to work. Only with the second generation did it get challenged, and the '16bit only' limitation of voodoo made other options better (despite performing worse). In the end, it was the advent of directx and true 2d and 3d capable graphics cards from ati and nvidia that made the difference. Before then s3 was fine. It had enough memory, and was sufficiently vesa compliant (means almost all dos games would work without needing univesa or anything else).

    in short 3dfx might've started the 3d wave, but can't be credited for S3's failure to keep up.
  • -4 Hide
    kkiddu , July 7, 2011 2:17 PM
    My motherboard has VIA S3G UniChrome IGP graphics(2004), and it sucks even compared to 2000s Intel's IGPs.

    Good riddance, I'll say.
  • -2 Hide
    plznote , July 7, 2011 3:05 PM
    Isn't VIA and HTC owned by husband and wife, respectively?
  • 0 Hide
    megamanx00 , July 7, 2011 3:57 PM
    S3 graphics have been pretty low end for the last decade. Even though VIA had S3 release dedicated GPUs a little while ago they have been regulated to the low end and set top boxes. Too bad VIA couldn't really capitalize on it. They should have been able to come out with a fusion esk chip well before Intel and AMD if they really wanted.
  • 1 Hide
    memadmax , July 7, 2011 8:23 PM
    Would be nice to see a third mega vid-chip maker to come out... besides intel and their left toe-nail graphics.....
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