What the hell happened to 3DFX?

[UberNeuman]

Michael -- yer wasting your time...

 

[pm]

I have to side with Michael here. Holders of common stock are nearly the last to receive any money when a company files for bankruptcy. That's where the distinction between preferred stock and common stock comes from. Among other advantages holders of preferred stock are in line ahead of common stock holders. Creditors are first in line, and common stock holders are near the end. I think (IIRC), that the only entities behind common stock holders are creditors who didn't file the paper within the allocated time period.

I have some personal experience in the matter - as my father and I held a significant amount of Lonestar Cement stock (my grandfather accumulated it when he worked there) and they filed for bankruptcy in the early 90's. Our stock was preferred stock - which is why I'm aware of the distinction. Anyway, we held onto our stock (which was pretty much worthless anyway), Lonestar reorganized and the stock has done fantastic for us up until we sold it a year or so ago. My outlook on 3Dfx is a little more grim.

EDIT:

LXi: From 3Dfx's 10-Q filed on Dec 20, 2000 (which is here):

"The proceeds from the asset sale and the sale of 3dfx's remaining assets will be used to pay or adequately provide for 3dfx's debts and liabilities. Any remaining assets will thereafter be distributed to 3dfx's shareholders in one or more distributions, and 3dfx will then dissolve."

Also, the last bit of the last line in the above paragraph directs refutes what Ethernet was posting.

 

[NOX]

Not to add fuel to the fire but this statment from Scott Sellers sounds pretty clear to me.

<< Under this agreement, nVidia will acquire certain, specific assets from 3dfx including technology, company and product brands and other assets. In addition, the 3dfx board of directors has recommended to our shareholders the dissolution of the company over the next few months. Until that time, however, 3dfx products will remain available at various retail and online locations, and we will continue to support our current and future customers. For additional information, please see the press releases that were issued by 3dfx on December 15, 2000. >>

 

[Vinny N]

You know, I wonder if this whole thing would have happened if 3dfx didn't buy STB's resources and start making their own cards...would 3dfx still be around if it was selling chips to other card manufacturers?...

 

[Roddy]

Ethernet,
It looks like, from the amount of replies that you've had to your false statement state that you are wrong! I'd have to agree. About 90% of the replies do!
I would suggest that before u make a prize DICK of yourself, you get your facts straight before you start thinking that you are more superior than anyone else who has brains!

 

[rahvin]

<<Im no expert in business law, thats what I heard from someone who owns 3dfx stocks and my own opinion in the matter. >>

Lxi,

Michael is an accountant, and you don't know what you are talking about. Shareholders are the LAST to get anything when a company shuts down. All creditors must be paid first, it's the law.

 

[LXi]

Yea Im fine with that.

Are you the same rahvin that says VIA sucks as much as FIC?

 

[Vrangel]

Vinny_n
Yeah, you can say that vertical integration killed them.
Same for Aureal. It turned out to be a bad idea.

I remember analysts predicted demise of Nvidia which refused to go vertical.
Kind of ironic that in the end Nvidia hired core of Aureal engineers and now 3dfx too.

 

[JackMDS]

Very Generally speaking, Computer companies can be divided into three Categories.

1. We (the company) will give the market what the market wants.
2. We (the company) will give the Market what the market wants, and try to improve on it.
3. We (the company) will tell the market what the market should be.

When you look at History, taking Category Three approach, sooner or later (in most cases), demised the company that takes this approach.


3dfx was engaged in Category Three thinking for too long, until it became too late.

 

[Michael]

The STB decision only hurt 3dfx because its engineers could not deliver a new chipset to them on time. Once they only had retail volume (no OEM sales), the extra expense of having all that unused capacity hastened their demise. ATi is a vertical company and it has helped them many times in the past.

3dfx made a decision to have their own cards under their own brand name. The had to chose between using contract boards makers and building an OEM sales force themselves or buying STB which already had all the infrastructure in place.

If the VSA-100 chips had come out on time, the STB acquisition would have been ok. Well, it is hard to say for sure, NVIDIA released a very good chip in the original GF and NVIDIA has excelent marketing.

Michael

 

[Vrangel]

Michael
Even once mighty ATI lost a good chunk of market share to Nvidia.
Seems like these days vertical integration isnt paying off
even for well established players.

 

[Ethernet]

Umm everything I posted came from an interview with the former public relations head of 3dfx, none of which is false.

 

[Michael]

Ethernet - let's try this again:

You're wrong.

Check your source again.

Michael

 

[LXi]

Ethernet:

Well then I guess that FiringSquad 3dfx interview and the annoucement on 3dfx's page is all wrong then.

If you think you're right, are you brave enough to post a link to that interview?

 

[SSP]

Umm everything I posted came from an interview with the former public relations head of 3dfx, none of which is false.

You gotta Link to that interview?

EDIT - LXi beat me to it.

 

[Daaavo]

Ethernet,

Perhaps you'd like to post a link to your supposed 'interview' so that we may all examine it????

 

[WileCoyote]

about stb-
don't forget they made boards using nvidia chips (like the riva used in the velocity card) which were pretty good and given high praise by the critics (computer magazine reviews). 3dfx was able to take this distribution point away from nvidia. bad choice for stb though =/ should have stuck with making boards for nvidia.

 

[Daaavo]

Still no link????