HTC re-evaluates S3 Graphics deal in light of patent defeat

Taiwanese phone manufacturer HTC is said to be re-evaluating whether to proceed with the intended $300 million purchase of S3 Graphics after the company suffered a defeat in its ITC patent dispute against Apple earlier this week.
Investors were concerned initially about the S3 acquisition because HTC's chairperson, Cher Wang, owned a stake in the business. Citigroup also questioned the deal, saying HTC could have just licensed the patents it needed to gain some leverage over Apple. The financial conglomerate later downgraded HTC's stock investment rating and prompted a drop in the company's stock value.
"HTC had decided to acquire S3 Graphics based on the strong belief that evidences of pate... »read more

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