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

To: Synapsid who wrote (11853)	8/28/1998 6:19:00 AM
From: mark doubiago	Read Replies (3) \| Respond to of 14577

ATI's new chip to use S3's texture compression??? gamecenter.com If this is true, it is certainly not free. S3 must either get some kind of licensing fees, royalties, or..... I can't imagine giving such an impressive technology away to your number one competitor who you are trying to take back lost business from. I never heard that S3 got anything from MS for using the compression technology in windows, but just getting MS to use it may be payment enough in that they lend credibility to it. ATI on the other hand, must have to pay in one way or another, unless this is the precursor of an S3/ATI merger. ATI merges/buys S3 to get the texture compression which they keep from the other chip/board makers, giving their chips a big performance boost and keeping ahead of the pack. They also get the patents which may allow them to move into new buisness areas like integrated CPU/graphics controllers, motherboards, etc. A merger/buyout may also preclude a future lawsuit over the CRUS patents. S3 hopefully bought them for something, maybe even as leverage for a buyout/merger. Who knows. DISCLAIMER: this is for information purposes only and not meant to be used as a basis for investing in this stock or any others, these are my opinions and/or ramblings.