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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (8372)	12/13/1997 1:47:00 PM
From: JAG	Respond to of 14577

"The question in my mind is why would S3 and Intel agree to 50-100 million settlement without as so much as a lawsuit???? Nobody....Nobody just hands over 50-100 million without at least an attempt at a fight." Excellent point. Cirrus has never made serious money. They were always going to do this and that. Never happened. I hope no one on this thread had the misfortune of owning Cirrus at its peak stock price. Cirrus has been a drag on the graphics industry and has helped forced margins down.

To: stock talk who wrote (8372)	12/13/1997 1:47:00 PM
From: Ken Muller	Read Replies (3) \| Respond to of 14577

Frank: >>The question in my mind is why would S3 and Intel agree to 50-100 million settlement without as so much as a lawsuit????<< In my discussions with some S3 people over the last 3-4 months there has been some mention of S3's interest in the Cirrus graphics division. (This thread has also discussed the issue.) The response I got from S3 personnel was that their interest was strictly in the patents. So, I guess there is some unanimity on their importance. It was my impression that S3 wanted to use these patents to control the graphics market. Makes sense, I guess. The licensing is a little different proposition. If Intel agrees to the licensing deal, that puts S3 between a rock and a hard place (their usual position these days). You can make a much better deal now than if you lose a lawsuit later. Also, there is always the danger that Intel would purchase the patents outright. With Intel under their belt, Cirrus would then go after the other competitors in the marketplace. My Machiavellian take on this story is that it is Intel's way of weakening S3's financial position at a critical time. They intend to let Cirrus do the dirty work. The nightmare continues. Happy Holidays, Ken