Diamond, S3 merger completed

S3 and Diamond Multimedia have announced, finally, that their merger has been approved by both companies' shareholders.

As previously reported on ZDNet News, S3 now plans to expand into several new markets, including Internet audio, broadband communications and home networking.

As a result of the merger, S3 has restructured its business model into four distinct units. Communications will develop home networking products, broadband communications products and Internet devices including the Rio. Multimedia will concentrate on desktop and mobile graphics products, and consumer graphics and video initiatives, while the Professional Graphics unit will concentrate on the workstation level graphics market.

The fourth unit will be Rioport, an online service complementing the Rio player and providing downloadable music and spoken content.

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