HTC will go ahead with purchase of S3 Graphics
HTC initially had interest in purchasing S3 Graphics after it was revealed that patents owned by the company could strengthen the Taiwanese smartphone maker’s legal case against Apple. In fact, the acquisition was reported as all but complete last summer. Then in November a judge ruled that Apple was not in violation of S3’s intellectual property, causing HTC to rethink a mostly patent-driven plan to purchase the graphics company. After more consideration, HTC will go forward with the initial buyout.
HTC’s general counsel Grace Lei affirmed the decision, saying, “we think S3′s patent portfolio is valid and strong, and we have decided to complete the purchase after cautious assessment.” The initial purchase price as of last July was $300 million, and the acquisition will add 270 patents to HTC’s portfolio. It also gives HTC the resources to develop their own graphics chips, though it is unclear if this remains in the company’s plans.
[via DroidDog]