HTC getting flack from Wall Street over their purchase of S3 Graphics

Earlier this week we reported on HTC’s $300 million acquisition of S3 Graphics and admitted absolute defeat when it came to conjuring up a theory as to what the smartphone maker was going to do with S3′s expertise in the PC graphics space. Turns out that the acquisition was purely over patents. Winston Yung, Chief Financial Officer at HTC, says that he expects the company to recoup their investment over the next 2 to 3 years by using S3′s patents both defensively, which we’ll assume means negotiating lower royalty rates by signing cross licensing agreements, and aggressively, lawyer code for suing your patent infringing ass. This has upset Wall Street, with Citigroup wondering if such a deal... »read more

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