NVidia to buy 3dfx

Graphics chipmaker NVidia will buy most of the assets of its ailing ex-rival 3dfx Interactive Inc. The purchase includes all of 3dfx's graphics-related assets, patents, trademarks, chip inventory, and brand names including Voodoo. The price is set at $112 million, with $70 million in cash and 1 million shares of registered NVidia common stock as valued on NVidia's closing price December 14. NVidia will not buy 3dfx's graphics board business, which 3dfx intends to dissolve without ending support for existing customers.

NVidia has not committed either to continuing the 3dfx brandname or absorbing it into its own label. 3dfx and NVidia will put their joint patent litigation on hold until the announced deal is closed, at which time their suits will be jointly dismissed.

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