While it was not as popular as Voodoo Graphics or Voodoo2, the Banshee sold in respectable numbers. Wagner starts from the premise that the 3dfx share price prior to the announcement of the Transaction could be used to assess market expectations of the value of the 3dfx business. Could this metric be used to predict an acquisition price for the 3dfx business or business unit that lines up with a market test or any of the indications of value one gleans from its SEC filings? This article possibly contains original research. By using this website, you accept the Terms of Use Agreement. The Sum of the Parts Under the sum of the parts approach, Mr.

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Jen-Hsun Huang, president and chief executive officer of nVidia.

In Re 3dfx Interactive, Inc., B.R. –

The only real advantage the Voodoo 5 had over the GeForce 2 GTS or Radeon was its superior spatial anti-aliasing implementation, and the fact that it didn’t take such a large performance hit relative to its peers when anti-aliasing was enabled. Commerzbank Ag In re: After December 15,nVidia made offers to approximately of the engineers based on nVidia’s internal staffing interactlve and hired approximately of them.

The credible intearctive leads only to the conclusion that at the time of the Transaction, 3dfx operated with STB as a unified company in most essential respects and while 3dfx designed graphics chips, it incorporated them into its own boards and sold only its own boards.

Conclusion Prior to the APA, 3dfx employed approximately people of whom approximately were engineers. Here, nVidia clearly wanted to hire engineers, but nVidia did not acquire the “aggregate” of 3dfx’s employees.


Despite this limitation, the Voodoo Graphics product and its follow-up, Voodoo2, were popular.

3dfx Interactive Inc.

imteractive In October3dfx also retained the investment banking firm of Robertson Stephens to conduct a search to identify parties interested in either a strategic or financial transaction with 3dfx.

Darwin and Kim Y.

Using this approach, Mr. The term sheet also provided that the definitive agreement would contain a provision requiring 3dfx to apply the cash interactige in a manner acceptable to nVidia. Reasonably Equivalent Value In determining whether a transfer has been for an exchange of reasonably equivalent value, the court analyzes all the circumstances surrounding the transfer.

Buyside Valuation The Court gives no credence to Mr.

Jon Peddie, [4] nVidia’s industry expert, also described the STB merger as an ill-advised strategic decision: Wagner also agreed that Robertson Stephens unc done a competent and thorough job of seeking out any and all investors or purchasers for 3dfx, in whole or in part, and would have been able to solicit the most likely prospective buyers or investors in the market as it existed at that time.

Simply put, when it comes to valuation issues, reasonable minds can and often do disagree. In early3dfx embarked on a new development project.

Its graphics chips were manufactured in Taiwan. This was accelerated by the introduction of Microsoft’s Interzctivewhich provided a single high-performance API that could be implemented on these cards, seriously eroding the value of Glide. He did not do a net income analysis or net present value analysis.

3dfx Interactive – Wikipedia

Wagner looked to the following: All of those things are part of an organic whole that define a business as opposed to simply a collection or list of assets. Ferraro is an electrical engineer in the field of computer graphics. In doing so, the company will address a weak point: If you are already a subscriber and want to access the full report, click here.


There are obvious weaknesses in such rules of thumb which Mr. The access to recruit the engineers, and any information provided by 3dfx or assistance provided by 3dfx in connection with that process is not something subject to avoidance in this context. The opinion of Roman Weil, [21] nVidia’s accounting expert, is consistent with this position.

It is not the engineers themselves? Under the Via proposal, 3dfx was required to terminate the add-in board business, dismiss a large number of employees and deliver a new chip 3fdx by a specified deadline. Thus, the end-users of 3dfx’s chips were people who purchased an entire graphics board containing 3dfx chips from retailers and then added those boards to their computers.

3dfx Interactive

Valuation Issues Because the Court has concluded that the Transaction did ic transfer a graphics business, business unit, workforce, or goodwill in the sense in which the Trustee uses the termthere is no need for a lengthy discussion of the Trustee’s valuation theory.

The Voodoo 3 was hyped as the graphics card that would make 3dfx the undisputed leader, but the actual product was below expectations. The APA also defines the Excluded Assets as those assets on Exhibit C subject to the Imteractive Agreement that directly and exclusively relate to the graphics board business of the Seller.