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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Mani1 who wrote (2799)	4/8/1999 3:50:00 PM
From: SIer formerly known as Joe B.	Read Replies (1) \| Respond to of 3645

>>>Cyrix was virtually a "fabless" I don't know what that means so please give another example without virtue.

To: Mani1 who wrote (2799)	4/8/1999 3:59:00 PM
From: jgideon	Read Replies (1) \| Respond to of 3645

He is right that a fabless company has a lot of intellectual assets. You aren't buying tangible things that you could resell if it doesn't work out. To buyout NMGC, you would have to make sure that the major brains behind NMGC are happy with the deal and will sign employment contracts for a duration. That said, NMGC has an extremely valuable asset in its MagicWare. This is what has enabled them to do memory and logic on a chip for a few years with really no competitors. Other companies are only now solving this problem and they haven't done it as well as NMGC. If IBM has the humility to see that NMGC has solved a problem really well and that buying that solution can help their copper initiative fly, then yes, IBM could buy NMGC. However, IBM has a real strong pride in their R&D folks, and it is not probable in my mind that they would not want to develop their own solution. I don't think a buyout by IBM is likely. Anyone else need this intellectual property, and half the notebook market to boot? Big sale on NMGC these days. jg