Re:Company acquisitions in general (Score 1)

Companies buy each other to increse their diversity. Say your company sells pig ears for dogs to eat. Now say that vets find out that pig ears are not safe for dogs to eat; your company is screwed. However, if your company also sells fluffy animal toys, you have that to fall back on. Also, the combined revenue generated from the diversity gives a greater pool to distribute amongst the other companies. If the fluffy toys aren't selling that well, they have revenue from the dog ears to fall back upon [as long as they're safe]. That's all I remember from my economics class. :)

Diamond sells more than graphics cards, and I guess that's the logic behind S3's decision. Otherewise, I have no clue.