HTC Buys S3 Graphics- Click here http://bit.ly/pFqnhx for full article

HTC Buys S3 Graphics- Click here http://bit.ly/pFqnhx for full article

In a deal totaling $300 million, HTC purchased S3 Graphics from VIA Technologies on July 6th, 2011. S3 Graphics is one of the leading groups in the field of graphics technologies, with its technology being used in computer devices of all types, including desktop PCs and gaming systems. HTC, well-known as the manufacturer of several popular smart phones, will become sole owner of S3 Graphics after the deal is finalized and receives regulatory approval.

After an initial purchase in 2001, processor developer VIA Technologies brought in WTI Investment International to help fund S3 Graphics in 2005. As such, this new deal will see HTC paying WTI $153 million, while VIA Technologies will receive $147 million. VIA utilized several of the technologies developed by S3 Graphics in their products, and HTC will now likely do the same. While it’s unknown exactly how S3 Graphics will fit into HTC’s mobile phone plans, it is likely that several phones will be released in the future that have benefitted from developments of the team behind S3 Graphics.

In fact, S3 Graphics holds several patents on their technological achievements. Just this month, a court found Apple guilty of infringing on two of these patents. This could make for an awkward situation, as HTC’s smart phones are in direct competition with Apple’s iPhone. What effect, if any, the judgment will have on HTC’s plans remains to be seen.

Many businesses purchase smaller companies that specialize in an area related to their field. While HTC uses graphics technology in all of its smart phones, it only makes sense to purchase S3 Graphics to help integrate their graphics knowledge into the fold. Since each smart phone is comprised of many different components, it makes economical sense to purchase a small company that specializes in a single area rather than outsourcing the work or trying to develop new technologies in-house. This doesn’t apply just to technology businesses, either.

Almost any business can benefit from having a team dedicated to a specialized area. While purchasing a company may be the way to go for a larger business, this could mean simply hiring a research team for a smaller business. By delegating very specialized tasks to a group that is well-versed in that area, the company overall can focus on other areas that require their attention. Not only will this save the company time and money, it will also likely produce a better product or service. The developments made by such acquisitions could even improve brand-awareness and lead to a larger market share overall.