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nVidia to buy 3dfx
December 17th 2000, 00:56 GMT by Needle
Earlier today, 3dfx Interactive released their fiscal 3rd quarter results. In it, the company details its plans for yet another round of cost-cutting measures, which now include selling its graphics chip business to rival NVIDIA Corporation.
The deal, worth a reported $70 million in cash and $42 million in NVIDIA common stock, will see NVIDIA aquire all assets related to 3dfx's graphics chip business, including all trademarks, brand names, patents and current chip inventory. 3dfx's graphic board business is not part of the deal.
Expected to be completed by early 2002, 3dfx's board of directors are recommending that shareholders approve the sale to NVIDIA. Upon completion of the deal, the patent infringement lawsuits will be abandoned and 3dfx will be dissolved.
With the number of graphics card companies getting smaller every day, this shouldn't come as much of a surprise. But what does this mean for consumers? NVIDIA, the now undisputed king of the 3D accellerated hardware war stands virtually unopposed as the only major chip-maker with a strong reputation for serious gaming. With their biggest rival out of the way, how do you think the lack of competition will affect the price and quality of NVIDIA's chipsets, if it does at all?
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