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My vision of an "entertainment company" (for what its' worth) is a company that has a vision of continued growth, expanding its' horizons to new areas of future growth. Entertainment means whatever will help to grow this company and continue to be profitable. Short term it manages its' current business to maximize profitability and cash flow. Using these profits it looks for near term expansion where it can leverage its' skills (use what it has to either expand into new markets or complimentary markets). This is the short leap, using money and talent to extend into other potentially profitable areas. The asumption being that even though business today is good, tommorrow may be different. Acquiring STB fits perfectly into this model. TDFX still has a few other areas of mid term growth left to explore - laptops, consoles, whatever. These are the not far from what they do type ideas. Acquisition, R&D, internal skills can be all be used to gain entry. The longer term vision is the next big steps. These are the little experiments that generally fail and cost money to try. These are those vision things that no one knows whether they will work but using some of your profits/cash you take a chance. TDFX setting up a gaming site is an example. Who knows, maybe it'll fail like their last attempt at a web site. Maybe it'll be a wild success in a few years where everyone meets to play games, watch tournaments, try out new software and just chat. This is why I like TDFX the most, they are not happy making chips, they want more. Joe C. |
