3DFX Message Board - Msg: 6822897

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Technology Stocks : 3DFX

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To: Scott Garee who wrote (9589)	12/14/1998 9:13:00 AM
From: Tae Spam Kim	Read Replies (1) of 16960

In an acquisition companies usually have to pay a premium to the market price. I think the acquisition of STB is a great idea if they want to really go up against ATI as the #1 graphics chip player. They now have the fully chain from design to distribution. STB has solid OEM relationships and retail distribution. It will give 3dfx better control over supply/demand/distribution issues. It's going to be interesting what happen though. STB makes a lot of Nvidia cards. Is 3dfx going to be STB ONLY or are they going to continue relationships with Creative and Diamond? If not will Creative now dump their equity position? Questions.. questions. -Tae Kim TJK Market Letter

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