Archived from the original on 22 August Murphy, nVidia’s investment banking expert, shared these criticisms. On April 18, substantially all of 3Dfx’s assets were sold to Nvidia Sub. Wagner did not perform an event study or similar analysis which might have isolated whether the drop in 3dfx share price was, attributable to factors other than the announcement of the Transaction. Huang, nVidia’s chief executive officer, testified that when nVidia first started discussing a possible transaction with 3dfx, nVidia believed that 3dfx would remain in the add-in board business and structured its first proposal on terms that would have made nVidia the exclusive supplier of chips to 3dfx.

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The evidence supports a conclusion that nVidia paid this sum for its own strategic reasons.

Grabowski estimated the potential value of the Intellectual Property Assets and the Patent Litigation claims to a hypothetical buyer who would exploit these assets through continued marketing and sale of 3dfx products for a hypothetical two year period by projecting cash flows derived by projecting product sales based on 3dfx market share and projecting a sales forecast based on historical trends before the Transaction. He did not do a net income analysis or net present value analysis.

Wagner adopted nVidia’s valuation of the Patents without any independent analysis. Carmack, the two witnesses with first-hand knowledge of 3dfx’s operations, corroborated this ijc.

The First Circuit also declined to disturb the jury’s determination that Sullivan Co. Under Delaware law, if contract terms are ambiguous that is, susceptible to different interpretationsthe Court may consider extrinsic evidence of the shared expectations of the parties at the time of formation.

Wagner also testified that while he did not specifically identify 3ddx concern value in his total values, it was nonetheless there. Settlement of the Patent Litigation Mr.


Wagner was asked whether engineers were assets subject to ownership and transfer, and whether he had valued them objectively from the standpoint of creditors, without taking into account any subjective value peculiar to nVidia. Peddie’s analysis is supported by the testimony of the former principals of 3dfx.

3dfx Interactive – Wikipedia

The Experts’ Definitions of a Business Mr. We were willing to pay a premium over the value of 3dfx’s assets to get that head start over other potential suitors for the 3dfx engineers. Commerzbank Ag In re: SLI capability was not offered in subsequent 3dfx board designs, although the technology would be later used to link the VSA chips on the Voodoo 5. On this record, there is no support for a finding that this decline in stock price indicates underpayment by nVidia.

Nvidia decided not to acquire STB and to continue to support many brands of graphics board manufacturers. In his third method, which he called the sum of the parts valuation, Mr. However, in scenes dominated by single-textured polygons, the Banshee could match or exceed the Voodoo2 due to its higher clock speed and resulting greater pixel fillrate.

Prior to the APA, 3dfx employed approximately people of whom approximately were engineers. PowerVR produced a similar 3D-only add-on card with capable 3D support, although it was not comparable to Voodoo Graphics in either image quality or performance. By the fall ofby its own admission, 3dfx had run out of cash and was faced with the prospect of shutting down in mid-December whether or not it did the deal with nVidia.

In explaining why nVidia used purchase accounting for the Transaction, he stated:.

Jen-Hsun Huang, nVidia’s chief executive officer, testified that nVidia’s market focus was on selling its chips to original equipment manufacturers, whereas 3dfx’s focus was primarily on selling its chips as part of add-in boards sold directly in the retail channel. Wagner, regarding valuation issues.


3dfx Interactive

Huang stated in a December 17, email to his staff: This change in 3dfx’s business and product offerings brought it into direct competition with companies that had previously been major customers. Whether it is described as a business because nVidia simultaneously acquired intellectual property and hired engineers who are viewed as able to work with that intellectual property, or it is described as a collection of assets, there is no credible evidence of value other than the one disclosed by the market.

Predator, Hydro Thunder, and Savage Quest. All of those things are part of an organic whole that define a business as opposed to simply a collection or list of assets. Leupp’s view of historical animosity between the two groups of engineers, Christine Unc, nVidia’s chief financial officer at the time, testified that other members of nVidia management did not share Mr.

BW for complete details regarding his credentials. Peddie is the principal intefactive a technically oriented marketing 3dcx management consulting firm that issues market reports interwctive publishes a bi-weekly report on computer graphics inteeactive emerging trends in digital media technology. RT engineers means the right to recruit an organized, skilled workforce ; RT metric is for valuing the technology of the company being transferred.

Because the parties’ views as to these particular tangible and intangible assets do not differ greatly, they will be discussed and disposed of here.