The acquisition of S3 Graphics by HTC is on the loose screws. The group from Taiwan is rethinking an acquisition after S3 Graphics patentenzaak against Apple, they lost. HTC wanted with the S3 patents against Apple, arm.
HTC made in July known S3 Graphics to want to take over from chip maker VIA. The decision seemed strange, because S3 Graphics is known for graphic cards and chipsets for the pc. It was HTC, then also the patents of S3; HTC uses technology described in the patents and the company hoped to have this in its legal battle with Apple could use.
The Us International Trade Commission ruled last week, however, that Apple has not infringed on patents of S3 with respect to image compression. This is S3 Graphics, a much less interesting m & a target for HTC. The group let us know the time of the acquisition, which $ 300 million is involved, re-consider.
At the same time reduced HTC the sales expectations for the fourth quarter with a whopping 23 percent. The sales would be compared to last year, not much lower, but HTC had taken into account a significant increase. The company blames the decline to the poor economic situation.