VIA Selling S3 Graphics to HTC
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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Kevin Parrish has over a decade of experience as a writer, editor, and product tester. His work focused on computer hardware, networking equipment, smartphones, tablets, gaming consoles, and other internet-connected devices. His work has appeared in Tom's Hardware, Tom's Guide, Maximum PC, Digital Trends, Android Authority, How-To Geek, Lifewire, and others.
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razor512 s3 graphics mostly sucked so via didn't need itReply
I had a old motherboard with s3 graphics, I had to run notepad on low settings. -
vaughn2k mehrdad_atiTHEY HAD BOGHT ATI IMAGEON BEFORE ! SO WHY DID THEY NID S3 ?Imageon was discontinued, and not sold...Reply -
S3 had some good technologies for the time, it surpassed even some Nvidia cards in 1999-2000. Hope to see some development now!Reply
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neiroatopelcc 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.Reply