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Technology Stocks : 3DFX

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To: Scott Garee who wrote (9593)12/14/1998 9:48:00 AM
From: joel3  Read Replies (2) of 16960
 
This deal is difficult to swallow.

From the press release...

The key benefits of the transaction will be:
* To provide PC-OEM and retail customers with a single source for 3Dfx branded add-in-boards for greater price stability and smoother product transitions.

Indicates that TDFX will drop its long developed relationship with other board makers.

STB announced a large loss this quarter, despite large sales of TNT. Why do they look so attractive to TDFX?

On the bright side, since the technology cycle is so fast, the excess baggage of TNT will go away quickly. On the negative, will this deal slow down the release of Rampage?

How long do share holder of TDFX have to wait for a solid long-term plan & profits?

Just trying to make sense of this announcement.

Joel
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