DaveBaumann said:
[url=http://biz.yahoo.com/e/031121/nvda10-q.html said:
NVIDIA 10-Q Filing[/url]]On October 15, 2002, 3dfx filed for Chapter 11 bankruptcy protection. We believe that the bankruptcy filing by 3dfx will allow a determination of the full number and scope of 3dfx's debts and liabilities. In the event of an adverse outcome, NVIDIA may be obligated under the Asset Purchase Agreement to pay 3dfx the contingent consideration subject to offsets for NVIDIA's claims against 3dfx arising from the Asset Purchase Agreement. On March 12, 2003, we were served with a complaint by the Trustee for 3dfx seeking, among other things, additional payment for the purchased assets and the assumption by us of 3dfx's liabilities. In addition, Carlyle Fortran Trust and CarrAmerica, former landlords of 3dfx, have filed suits against us seeking payment of the rents due by 3dfx.
What's the old saying about "chickens coming home to roost?"...
In 2003 nVidia's seen the chickens just flocking homewards. Poetic justice is if anything an understatement in this case. I've never doubted that the only reason nVidia "bought" 3dfx in the first place was to bury the multitexturing patent suit permanently. I mean, they've done just about zero with any of 3dfx's IP or patent portfolio in the time since, and they didn't need to buy 3dfx's assets to hire its ex-employeees, so it's difficult to see them gaining much of anything from the purchase except permanent relief from the specter of that suit. Thanks for bringing this up--I've heard many people say in the time since that nVidia purchased 3dfx's assets but not their liabilities and frankly wondered how such a thing could be...
Now I see that nVidia did indeed purchase the liabilities as well, as I had always thought. I could not imagine a bankruptcy judge allowing the sale of a company's core assets without an assumption of liabilities, since a bankruptcy exists for the benefit of creditors (in theory, of course...
).