VIA Technologies, Inc. ("VIA") today announced the signing of definitive agreement to sell all of its shareholding in S3 Graphics Co., Ltd. ("S3 Graphics") to HTC Corporation ("HTC"). S3 Graphics is a leading provider of innovative graphics visualization technologies used in PCs, game consoles and, more recently, mobile devices.
VIA acquired S3 Graphics in 2001 with the intention to accelerate integration of graphics capabilities with its processor and chipset products. S3 Graphics became undercapitalized in 2005, and VIA introduced WTI Investment International, Ltd. ("WTI") as a new investor to help fund the operations and R&D initiatives. WTI is a private investment company, in which Cher Wang, Chairman of VIA, is a significant shareholder.
Under terms of the agreement with HTC, total consideration for all outstanding shares of S3 Graphics will be US$300 million. Of which, VIA will receive US$147 million; and WTI will receive US$153 million. VIA will recognize a capital gain of US$ $37 million and paid-in-capital of US$ 115 million in this transaction.
"The transaction would allow VIA to monetize a portion of its rich IP portfolio, yet retain its graphics capabilities to support the development and sale of its processors and chipsets," said Tzu-mu Lin, Senior Vice President and Board Director of VIA. "We wish to thank WTI for its capital contribution to support S3 Graphics since 2005."
The proposed transaction has received approvals from the boards of directors of VIA, WTI, and HTC. Subject to regulatory approvals and other customary conditions, the transaction is expected to close before end of 2011.
Latest News Posts
- The young Han Solo spin-off is a go, as Lucasfilm find their actor
- AMD's new Zen CPU will arrive in 6 and 8-core versions at launch
- iPhone 7 could have a 3.5mm headphone jack after all
- Doom PC specs released, takes up 50GB on PS4 and Xbox One
- Overwatch beta goes live on all platforms
- H97MPro4 - Machine mysteriously turns back on in Win7
- Windows 10 install - Raid 0 SSDs
- LaCie P9227 Porsche Design Slim Drive 2TB USB C Review
- GA-EX58-UD3R won't post
- Creative iRoar Intelligent Bluetooth Speaker Review
- Turtle Beach reinvents eSports gaming headsets with the Elite Pro
- Colorful to showcase new products at COMPUTEX 2016
- Global e-channel expanded by 23% in Q1-2016 according to Icecat
- The PGL KeSPA Regional Minor Championship: Asia to debut this Thursday; full schedule revealed
- ASRock and Intel teams up to create one of the smallest mini PCs: DeskMini