Creative Technology

Sim doesn't seem to be a businessman at all.

Creative is a good example of how 1) a good business can lose its moat 2) how bad management can affect good business 3) how value measures like net cash is irrelevant when management does not intend to disteubute it or use it in a nonchalent way 4) how prolong the "dying" process can be and hence how many people can be trapped again and again

These are some issues to look out for in terms of value traps vs value stock. That's why I don't stick around when management gone bad despite what the numbers say.

keynes once said

" the central principle of investment is to go contrary to the general opinion on the grounds that if everyone disagree about its merits, the investment is inevitably too cheap and therefore attractive"

Intel buys Creative's GPU, SoC know-how

Published on 21st November 2012 by Gareth Halfacree

http://www.bit-tech.net/news/hardware/20...tive-gpu/1

(18-09-2013, 11:40 PM)port Wrote: Intel buys Creative's GPU, SoC know-how

Published on 21st November 2012 by Gareth Halfacree

http://www.bit-tech.net/news/hardware/20...tive-gpu/1

Some background,

http://www.kitguru.net/components/jules/...quisition/
In 1999, Intel paid 3DLabs $7.5m for use of its existing patents. The new deal appears to include $20m for all its patents and another $30m for the UK-based boffins. Creative itself bought 3DLabs in 2002 for $170m – so it’s not looking like the world’s best ever investment.

3Dlabs Signs Definitive Agreement to be Acquired by Creative Technology.
March 11, 2002
Creative will purchase 3Dlabs stock at $3.60 per share, with two-thirds being converted to Creative stock and one-third to cash, valuing the company at approximately $170 million.

3Dlabs
From Wikipedia, the free encyclopedia

Nov 19 2012 sgx announcement:

Creative Technology Ltd today announced it has entered
into an agreement with Intel Corporation for Intel to license certain technology and patents from
ZiiLABS Inc. Ltd, a wholly-owned subsidiary of Creative, and acquire certain engineering
resources and assets related to its UK subsidiary ZiiLABS Limited (formerly known as 3DLABS
Limited).

ZiiLABS Inc. Ltd (still wholly-owned by Creative) will continue to retain all ownership of its
StemCell media processor technologies and patents, and continue to supply and support its ZMS
series of chips to its customers. It will also continue to develop devices incorporating the
ZiiLABS ZMS-20 and the ZMS-40 media processors.

“Creative will continue to retain ownership of its formidable patent portfolio in the field of 3D
graphics and media processing. We will be engaging in discussions to further monetize this
valuable collection of 100 plus patents.” added Sim Wong Hoo.

Creative Subsidiary ZiiLabs Files Patent Infringement Lawsuit Against Samsung and Apple

Total claim about US$70mil!

http://infopub.sgx.com/FileOpen/007PR201...eID=287804

(11-03-2014, 10:53 AM)GPD Wrote: Creative Subsidiary ZiiLabs Files Patent Infringement Lawsuit Against Samsung and Apple

Total claim about US$70mil!

http://infopub.sgx.com/FileOpen/007PR201...eID=287804

It seems lawsuit becoming a "core" business for Creative, after the success case previously. The company is trying to monetize its previous R&D effort...

(not vested)

(11-03-2014, 10:53 AM)GPD Wrote: Creative Subsidiary ZiiLabs Files Patent Infringement Lawsuit Against Samsung and Apple

Total claim about US$70mil!

http://infopub.sgx.com/FileOpen/007PR201...eID=287804

GPD: The US XXXXX is the patent registration number. It's not the estimated lawsuit claim.

So far, it can be either way. They are competing against the two largest players now. I wonder if Creative has the firepower to drag the lawsuit. Could Intel have some support for this?

(11-03-2014, 11:26 AM)dzwm87 Wrote:

(11-03-2014, 10:53 AM)GPD Wrote: Creative Subsidiary ZiiLabs Files Patent Infringement Lawsuit Against Samsung and Apple

Total claim about US$70mil!

http://infopub.sgx.com/FileOpen/007PR201...eID=287804

GPD: The US XXXXX is the patent registration number. It's not the estimated lawsuit claim.

So far, it can be either way. They are competing against the two largest players now. I wonder if Creative has the firepower to drag the lawsuit. Could Intel have some support for this?

Oh! Read wrongly. So the claim could potentially be much higher than that? I suppose if you want to get against these two giants, you go for the big kill!

Market is reacting positively to the news.