1. What are you announcing today?
NVIDIA and 3dfx have signed an agreement for NVIDIA to purchase certain graphics assets of 3dfx, a pioneer and recognized leader in graphics technology. These assets include, but are not limited to, all the patents, pending patent applications, trademarks, brand names and chip inventory related to the graphics processor business of 3dfx. For these assets, NVIDIA will pay to 3dfx a total consideration of $70 million in cash and 1 million shares of common stock. Under the terms of this transaction, NVIDIA will not assume any liabilities of 3dfx whatsoever. This transaction is subject to certain closing conditions including shareholder approval by 3dfx shareholders.
2. Why is NVIDIA purchasing these assets? What is the business reason for this?
NVIDIA believes that 3dfx has a tremendous amount of resident expertise in graphics technology. 3dfx, with its patented and award-winning technology, has been recognized for its ability to bring some of the world's finest games, educational content, interactive entertainment and media-rich business applications to life.
NVIDIA as the worldwide leader in graphics processors and media communications devices has been on a phenomenal growth path over the past few years. From $29 million in revenues in 1997, the Street expects us to reach over $700 million in revenues by 2001. We continue to see more opportunities in our business as we extend our product offerings and expand our target market.
Upon closing, this purchase of assets will also dissolve the cross litigation with 3dfx.
3. Why is this transaction structured as a purchase of assets rather than an outright purchase of 3dfx?
The structure of this deal allows NVIDIA to purchase certain assets that are consistent with our business model without acquiring 3dfx liabilities.
4. What is included in this transaction?
This transaction includes, but is not limited to, all the patents, pending patent applications, trademarks, brand names and chip inventory related to the graphics processor business of 3dfx. Additionally, upon closing, the lawsuits between the two companies will be dropped.
5. What are the benefits for NVIDIA shareholders?
This transaction substantially increases graphics technology assets at NVIDIA making it a stronger force in the market. In addition, the NVIDIA and 3dfx patent infringement suits are stayed and will be dismissed with prejudice at the closing of the transaction.
6. Are you also acquiring the board-related business?
No, the board business remains with 3dfx.
7. What happens to the 3dfx and Voodoo brands?
As of the signing of the definitive agreement, both the 3dfx and Voodoo brands become property of NVIDIA.
8. What will happen to 3dfx's existing product lines and retail distribution channel?
The remaining 3dfx entity is responsible for their current product lines and retail channel. It is best to check those details with 3dfx management.
9. What is NVIDIA's intention for the 3dfx and Voodoo brands?
We believe that the 3dfx and Voodoo brands are well known and respected throughout the industry. We have not finalized our plans for these brands at this time.
10. What happens to 3dfx after the transaction is completed?
According their press release, 3dfx has a plan of dissolution and they intend to wind up their business post this transaction. Since NVIDIA is not involved in the dissolution of the 3dfx, it is best to check those details with 3dfx management.
11. What impact will the deal have on your existing board relationships?
None. We will continue to work closely with our existing customers.
12. What happens to the Voodoo family of products currently in retail stores? Who will support the installed base of 3dfx customers?
This deal only involves core graphics assets. The 3dfx product in the channel and installed base and customer support remain the responsibility of 3dfx. It is best to check those details with 3dfx management.
13. Does the agreement eliminate the pending lawsuits?
Yes, upon closing of the transaction. In the meantime, the lawsuits will be stayed.
14. What acquisition costs do you anticipate to be associated to the deal (i.e. layoffs, closures, etc.)? What are the closing conditions for this transaction?
We are not responsible for any severance, shutdown, etc. costs. The conditions include 3dfx shareholder approval of the transaction and of the plan to liquidate 3dfx, among others.
15. What does this mean for the graphics industry?
The combined expertise and technology will result in unmatched technical strength. We will be well positioned to leverage our graphics franchise into the world's most important existing and emerging visual communications platforms.
WOO-HOO!!!! Life is good. I guess the v5 6000 is officially toast
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-Pikachu
-Pikachu
ICQ: 19553058
PIV 2.8 @3.4
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1x100gb 7200rpm HDD (USB 2.0)
48/25/48A PlexWriter
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VisionTek GeForce 4 ti4600
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This is the worst thing that could happen to the graphics card industry...No matter what brand you prefer, less choices makes the other company(s) not have to work harder and thus the products will suffer.
Competition is the key....
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Two wrongs don't make a right, but, three rights make a left!!!!!
Two wrongs don't make a right, but, three rights make a left!!!!!
No it is a sad day for Graphics Junkies as yet another large corporate manufacture sucks down it's main competition. Now unless ATI can get a Radeon Ultra out why should Nvidia hurry with NV20...... just continue along with an expensive supercharged GTS for as long as they want.
The only bright side is a future Nivida product may benefit from the 3DFX FSAA.
Damn this sucks!
There should be some kind of law against this, this is really going to screw the graphics market badly.
Who is going to challenge Nvidia now???
ATi is going to come under increasing pressure in the business market with the release of the Crush motherboards, after all why buy an ATi Xpert 2000, when you can buy a motherboard with GeForce on-board graphics for less????
Can the almost mythical Matrox G800 compete with Nvidia??? Nope, it might beat the GeForce 2, but the NV20 will bury it alive.
The Kyro??? An up-clocked Kyro with integrated T+L engine???? It might have the performance, but I doubt it could get the sales coz no-ones heard of it.
This new S3 chip I've heard rumours about??? The so-called Paramount core???? Can't see it happening, and I have a feeling the Paramount is going to be VIA's answer to the NVidia Crush boards, i.e. an on-board graphics solution. Hell, even the Savage2000 Pro (200Mhz core, 183Mhz memory) that was nearly released before S3 went bust couldn't quite match the GeForce 2, so go figure....
Anyway, anyone want to show me a non-Nvidia card for 2001 that might actually match NVidias performance???? Coz I can't see one...... can anyone say "Monopoly".......
Cheers,
Fallguy
Looks like its ATI/Nvidia now,matrox aint into gaming much,who else is there??
I use to battle in hear with my Voodoo3 vs TNT2 ect,(ALOT!!) and when the geforce came out I did some research and became a Nvidia junkie,and have been ever since.
I kind of thought this might happen,they couldnt keep up with the 6 month product cycle that Nvidia was doing,therefor when they did get something out ,it was TOO late.
Farewell to the KING of graphics,remember if it wasnt for them we wouldnt be at the technilogical advancement that we currently enjoy,we would probably be playing on 4 meg cards right about now.
Oh well. This does disturb me a little; I fear for my wallet, at least. Without any real competition, Nvidia is totally capable of sitting on their achievements thus far and making the consumer pay through their collective noses. I highly doubt that ATI can really muster any competition; the only reason they've stayed alive as long as they have is their giant OEM contract. They (so far) haven't been able to write a decent driver, so their cards just don't perform on a par with Nvidia's. I like the Radeon, and I'm glad ATI made the leap, but I just can't see anyone breaking Nvidia's stranglehold on the market. I'm not counting on Matrox, S3, Kyro, or anybody else.
Here's to hoping that this is a wake-up call to ATI, because they're next if they aren't careful...
That was one great thing about the Voodoo cards; you plugged them in and they just plain worked. They were the most compatible cards I've ever plugged into any computer.
Unfortunately, that's about all they've been for the last year or so.
this remember me aureal - creative
the best two soundcards owned by one company
3dfx - nvidia
two of the best videocards owned by one company....
maybe we will see glide, 3dfx FSAA method in nvidia cards... all in one solution videocard
i wonder what ATI gonna do???
n' same thing with creative... there r speculation that creative will incorporate a3d 2.0 in thier next release drivers (they will drop the bomb like when they release liveware) all in one soundcard...
Well, ATI is about as big as NVidia in the OEM market, so they're not some small-time player, and withh the Radeon they're not even behind in the perormance race.
Others are Matrox who might sometime again release a gaming board, S3 maybe, Kyro maybe.
Then of course there's BitBoys Their latest release date is Q1/2001, and this time it has TnL built in. Can't wait for that, but lucky we'll know soon enough...
"No doubt the truth, as usual, would be somewhere between the extremes" -Arthur C Clarke
Sorry, I am still basking in the glory of being right. I have fortold the death or 3DFX since the day they made the statement, "Hardware T&L will never take hold, programmers will never use it, and thusly, we do not plan to include Hardware T&L in our next line of cards."
------------------
-Pikachu
-Pikachu
ICQ: 19553058
PIV 2.8 @3.4
MSI 850E-Max
4x120gb 7200rpm HDD 8meg cache(Raid 0)
1x100gb 7200rpm HDD (USB 2.0)
48/25/48A PlexWriter
16x Pioneer DVD-Rom
VisionTek GeForce 4 ti4600
512mb PC1066 RD-Ram
SoundBlaster Audigy
21" Sony E500 monitor
Windows XP Professional
I don't know, I wouldn't count on this happening yet. It still has to pass through the government, anti-trust laws and all, so it may not even go through.
Pikachu: You like the idea of less competition, less choice, and higher prices?
HOW MESSED UP ARE YOU!?
3dfx didn't hurt you. 3dfx offered you a choice of card that you chose not to purchase. That's a bad thing!?
Here's a bad thing: Influencing on-line reviews. Releasing benchmark programs that are heavily biased towards their own products. Buying out competition.
Please welcome Nvidia: Microsoft II.
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P3 750 @ 750!?, 128MB of PC-150 SDRAM, Aopen AX63 Pro, V3 2000 @ 175, 13.6GB - 7200rpm WD Expert, SB Live Value, LG 40x CDROM, Jazz 300W Front Speakers + Sony SRS PC300D Rear Speakers / Sub Woofer, Sony CPDE200 17" Monitor, Full Tower Case, Win98 Original Edition.
P3 750 @ 750!?, 128MB of PC-150 SDRAM, Aopen AX63 Pro, V3 2000 @ 175, 13.6GB - 7200rpm WD Expert, SB Live Value, LG 40x CDROM, Jazz 300W Front Speakers + Sony SRS PC300D Rear Speakers / Sub Woofer, Sony CPDE200 17" Monitor, Full Tower Case, Win98 Original Edition.
Well I see it like this:
Yes there is a long way to go before its final but I didnt read that nvidia was killing 3dfx, just buying them. And that is not good, remember how INTEL fed us slow chips 33 Mhz at a time because they could ? Nothing to do but Golf ? If they shelve the 3DFX division after buying it we may be stuck with GeForce II til 2005. Since they know we're into it, may as well sell as many as possible...its a cash cow.
I'm afraid that it is up to ATI to do something drastic...they are fully capable, the are not out to lunch by any means...they need to provide competion so that Nvidia doesnt go play Golf !
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