I dunno if this has been posted before
3DFX GAMERS BOARD
Just to make sure I got the link right, I'm posting the message in its entirety. It's a slightly different lingo, for those who don't know, but TDFX is 3dfx's ticker symbol on the Nasdaq stock exchange.
Hey BigTii,
I am not a techie but in discussing the recent news regarding TDFX, there are a couple of things that I want to make clear. Please understand that I am in no way attempting to sound like an expert or know about any insider info. One thing that my fellow investors and I are big on is logic. This is the scenario that we've put together, I would just like to hear your comments about it.
Alot of this information you will already be aware of but what we have done is tried to put the puzzle together.
Within the last 2 years, TDFX bought Gigapixel, STB, and filed a patent infringement lawsuit against Nvidia. The diversification process has been downright terrible.
Within the last year, Nvidia has raised over 500 million in cash. Why do you think that they raised all this money? Do you think that it was because of the royalties they felt they might have to pay if they lost the lawsuit? I don't think so, I think it was definitely because they wanted to buyout TDFX. With a buyout they could kill the lawsuit, take out a competitor, and increase their technology value significantly. All this info is very general but quite significant. I do feel as though TDFX would not be able to pursue the lawsuit independently. It is quite obvious that they wouldn't have the resources to pursue this long-term. I believe that the TDFX has never been interested in being bought out by Nvidia and would much rather be bought out by ATI or any other company who would, after buying TDFX out, pursue the lawsuit on their own. Nvidia knew that no matter what, this lawsuit is not going to just get dropped.
How much did TDFX pay for Gigapixel? I believe it was over $150 million. How much income have the Voodoo cards been bringing in for the last couple of months? I'm not trying to sound sarcastic with these questions but I'm just a little lazy to find out the exact figures.
There is no way that TDFX would buy Gigapixel for over $150 million and then six months down the line sell the Voodo line of products, brand name, Voodoo based patents, Rampage based technology & patents, & Gigapixel to their much hated rivals for barely over $100 million. C'mon now, in using logic we all know that TDFX hasn't sold all of these elements to Nvidia. The one thing that we do know is that TDFX is selling their brand name, Voodoo products, and Voodoo-based patents as well as a group of other patents as well as DROPPING THE PATENT INFRINGEMENT LAWSUIT to Nvidia. Is this good news? DEFINITELY. How much Profit have the Voodoo Cards been bringing in? Another key point in the recent announcement is that Nvidia is paying TDFX somewhere around $70 million and giving them 1 million shares of NVDA stock. This is the KEY POINT. Why would Nvidia give TDFX $1 million shares? They can obviously give TDFX another $50 million with all the cash they have raised. Let me tell you why, TDFX requested the deal like this because they can use the shares as collateral to the banks for future loans. If Nvidia gave them $50 million in cash that's all TDFX can get, but if they use these shares as collateral, they will be able to borrow more money in the future. But what about their bad credit? I do believe that TDFX will use a hefty amount of the cash received from Nvidia to pay off some debt. Did you notice how $15 million is a loan from Nvidia? Well at first we thought, the damn directors are going to give themselves a bonus and walk away happy while us shareholders get nothing. With more analytical thinking, we came to the conclusion that TDFX is doing the best thing that could be done for them right now. They are saying, screw the Voodoo line, screw STB, let's get rid of everything about the company that is not looking forward.
Right now, this is the position that TDFX is in, they have gotten rid of alot of the unprofitable parts within the company and are going to cut operating costs drastically. They now have some cash, a loan from Nvidia as well as collateral for the banks. I'm not sure at all if they have sold the Rampage-based technology to Nvidia but one thing I'm sure of is that they haven't sold Gigapixel to them. My gut feeling is that they haven't sold any Rampage tech and feel as though through this deal, TDFX is going to have the resources to be able to get Rampage out soon as well as focus on Gigapixel tech.
I feel as though the press release was made to sound horrific and at first glance it does, but with a little more insight, I think it is great news. I think that it is really saying : TDFX and Nvidia settle Patent Lawsuit out of court, and TDFX drastically cutting costs to pursue Gigapixel chip creation.
Once again I will restate the facts. TDFX diversification goes terrible, and files patent lawsuit against Nvidia. TDFX in bad shape with high burn rate and no profits. Nvidia raises a bunch of cash. TDFX in terrible shape & starts rebuilding process by selling Juarez plant. TDFX sells the money losing Voodoo-based products, patents, names, and settles infringement lawsuit for $70 million cash and 1 million shares of Nvidia stock. TDFX burn rate is much lower now and they can now focus on the good stuff. I don't know about you BigTii but this week I'll be buying a #### load of shares. This is no pump and dump just don't want shareholders to get screwed.
3DFX GAMERS BOARD
Just to make sure I got the link right, I'm posting the message in its entirety. It's a slightly different lingo, for those who don't know, but TDFX is 3dfx's ticker symbol on the Nasdaq stock exchange.
Hey BigTii,
I am not a techie but in discussing the recent news regarding TDFX, there are a couple of things that I want to make clear. Please understand that I am in no way attempting to sound like an expert or know about any insider info. One thing that my fellow investors and I are big on is logic. This is the scenario that we've put together, I would just like to hear your comments about it.
Alot of this information you will already be aware of but what we have done is tried to put the puzzle together.
Within the last 2 years, TDFX bought Gigapixel, STB, and filed a patent infringement lawsuit against Nvidia. The diversification process has been downright terrible.
Within the last year, Nvidia has raised over 500 million in cash. Why do you think that they raised all this money? Do you think that it was because of the royalties they felt they might have to pay if they lost the lawsuit? I don't think so, I think it was definitely because they wanted to buyout TDFX. With a buyout they could kill the lawsuit, take out a competitor, and increase their technology value significantly. All this info is very general but quite significant. I do feel as though TDFX would not be able to pursue the lawsuit independently. It is quite obvious that they wouldn't have the resources to pursue this long-term. I believe that the TDFX has never been interested in being bought out by Nvidia and would much rather be bought out by ATI or any other company who would, after buying TDFX out, pursue the lawsuit on their own. Nvidia knew that no matter what, this lawsuit is not going to just get dropped.
How much did TDFX pay for Gigapixel? I believe it was over $150 million. How much income have the Voodoo cards been bringing in for the last couple of months? I'm not trying to sound sarcastic with these questions but I'm just a little lazy to find out the exact figures.
There is no way that TDFX would buy Gigapixel for over $150 million and then six months down the line sell the Voodo line of products, brand name, Voodoo based patents, Rampage based technology & patents, & Gigapixel to their much hated rivals for barely over $100 million. C'mon now, in using logic we all know that TDFX hasn't sold all of these elements to Nvidia. The one thing that we do know is that TDFX is selling their brand name, Voodoo products, and Voodoo-based patents as well as a group of other patents as well as DROPPING THE PATENT INFRINGEMENT LAWSUIT to Nvidia. Is this good news? DEFINITELY. How much Profit have the Voodoo Cards been bringing in? Another key point in the recent announcement is that Nvidia is paying TDFX somewhere around $70 million and giving them 1 million shares of NVDA stock. This is the KEY POINT. Why would Nvidia give TDFX $1 million shares? They can obviously give TDFX another $50 million with all the cash they have raised. Let me tell you why, TDFX requested the deal like this because they can use the shares as collateral to the banks for future loans. If Nvidia gave them $50 million in cash that's all TDFX can get, but if they use these shares as collateral, they will be able to borrow more money in the future. But what about their bad credit? I do believe that TDFX will use a hefty amount of the cash received from Nvidia to pay off some debt. Did you notice how $15 million is a loan from Nvidia? Well at first we thought, the damn directors are going to give themselves a bonus and walk away happy while us shareholders get nothing. With more analytical thinking, we came to the conclusion that TDFX is doing the best thing that could be done for them right now. They are saying, screw the Voodoo line, screw STB, let's get rid of everything about the company that is not looking forward.
Right now, this is the position that TDFX is in, they have gotten rid of alot of the unprofitable parts within the company and are going to cut operating costs drastically. They now have some cash, a loan from Nvidia as well as collateral for the banks. I'm not sure at all if they have sold the Rampage-based technology to Nvidia but one thing I'm sure of is that they haven't sold Gigapixel to them. My gut feeling is that they haven't sold any Rampage tech and feel as though through this deal, TDFX is going to have the resources to be able to get Rampage out soon as well as focus on Gigapixel tech.
I feel as though the press release was made to sound horrific and at first glance it does, but with a little more insight, I think it is great news. I think that it is really saying : TDFX and Nvidia settle Patent Lawsuit out of court, and TDFX drastically cutting costs to pursue Gigapixel chip creation.
Once again I will restate the facts. TDFX diversification goes terrible, and files patent lawsuit against Nvidia. TDFX in bad shape with high burn rate and no profits. Nvidia raises a bunch of cash. TDFX in terrible shape & starts rebuilding process by selling Juarez plant. TDFX sells the money losing Voodoo-based products, patents, names, and settles infringement lawsuit for $70 million cash and 1 million shares of Nvidia stock. TDFX burn rate is much lower now and they can now focus on the good stuff. I don't know about you BigTii but this week I'll be buying a #### load of shares. This is no pump and dump just don't want shareholders to get screwed.