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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?


To: Sleeperz who wrote (2681)2/5/1999 8:28:00 AM
From: NTT  Read Replies (1) | Respond to of 5927
 
It seems to me the only thing that saved them from going under after the Savage3D turned out to be a flop was their patent acquisitions from Exponential Technologies. They bought those out extremely cheap from the defunct company and held it over Intels head in order to get the financing as well as the right to say that they are Intels first validation partner for AGP4x. I can't see Intel being extremely pleased with S3 after they threaten them like this, but they had no choice because of the liability against Merced.

As far as ATI purchasing SIII, my understanding is that S3 did not have anything to offer even though they were dirt cheap. I agree, that it would have been nice to grab them to eliminate them completely but given their situation at the time, it looked like they would go under by themselves anyhow. The Tseng labs acquisition was much better IMO because it gave them access to a lot of valuable patents and some excellent next generation technology. As you can see with S3 announcing the Savage4, they don't have anything to offer in terms of technology since the R128 already has all those features.