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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Waldeen who wrote (9664)	12/15/1998 8:40:00 AM
From: Scott Garee	Read Replies (1) \| Respond to of 16960

I can provide some insight on this one: 4. Are there strategic advantages of STBI's location (Richardson?) in terms of ongoing work with other partners of 3Dfx? If so, is the purported move of headquarters only officers or entire staff? STBI is located about 100 yards north of our building. (Or will be shortly, they are just finishing a brand new corporate headquarters.) My guess is there's probably at least a 5 year lease, so they won't be moving the technical staff any time soon. TDFX already said the corporate staff would consolidate in San Jose. There will be layoffs in HR, finance, management and other redundant organizations, that's how these things work. Hopefully TDFX will do it wisely. Usually the acquired company takes the hit, but smart companies will use the opportunity to prune the deadwood from both trees. My guess is late next year before the culling starts. A lot of the corporate folks will leave rather than move to CA, at least from my experience. (They just don't want to leave the flat, hot, barren beauty of North Texas. :) There aren't any PC OEM's in this area. DELL is in Austin, which is closer to here than anywhere else. HP's operation here is just sales and supercomputers, so we don't really do anything with STBI. As for NVIDIA, it's not too hard to figure out: CREAF: $400M cash (plus profits some TDFX investment) DIMD: <$100M cash The bidding war is likely to be a short skirmish. Final outcome left as an exercise for the reader. :)