S3 Gets a New Name

S3 has announced it is dropping its graphics chip business and at the same time picking up a new name: Sonicblue. Under the deal, valued at $323 million, chipset manufacturer Via Technologies will get S3’s graphics chip business in exchange for returning the 15% stake it had in S3 and assuming other liabilities. The agreement replaces a similarly valued cash and stock deal that was held up by Taiwanese regulators. With the sale, Sonicblue will have three main businesses: the Rio MP3 music player operation, the recently announced Frontpath Internet appliance business, and the Access line of home networking gear and modems.