S3 to acquire Diamond Multimedia Systems

S3 to acquire Diamond Multimedia Systems gets a June 1999 update. S3 Incorporated announced it has entered into a definitive agreement to acquire Diamond Multimedia Systems.

In a strategic move to capitalize on high-growth areas, S3 expects to emerge as a key player in the Internet appliance and home networking markets. S3 also plans to maximize the two companies’ multimedia strengths to become a total solutions provider for its graphics business. The company recently announced that it is scheduled to receive 252 million shares of United Microelectronic Corporation (UMC) stock, which is valued today at approximately $600 million based on current NT value and UMC trading price.