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

To: Synapsid who wrote (12420)	12/18/1998 2:47:00 PM
From: Petz	Read Replies (1) \| Respond to of 14577

I was under the impression that S3 owned a patent purchased at auction related to the Merced. Is obtaining this patent the impetus for the S3 deal? So here's how I see it: 1. S3 had a patent which was strong enough to be able to sue Intel for patent infringement on the Merced design. Intel was between a rock and a hard place. 2. Intel knows that FTC will not allow them to buy S3. 3. Intel decides to cross license patents with S3. FTC can't say anything about this. These patents will allow S3 to get into new businesses -- set top boxes and chipsets, for example. 4. Intel realizes that license for Intel patents will make S3 a takeover candidate, so, 5. Intel buys warrants on S3 stock. If a takeover happens, they make a bundle. Petz