``After aggressively pursuing a wide range of options that take into consideration the interests of our creditors, our shareholders, our employees and our customers,'' said Alex Leupp, president and CEO, 3dfx Interactive Inc., ``we strongly believe that to reduce expenses, sell our assets and dissolve the company provides the highest return to our creditors, shareholders, and employees.''

``We expect that the combined technologies of 3dfx and NVIDIA will continue the legacy that 3dfx began in 1994,'' Leupp continued. ``NVIDIA is the number one supplier of graphics technology to the OEM market. With the addition of 3dfx's high-quality technology that leads the retail market, we believe the combination of the two will result in even greater PC graphics leadership.''

update: NVidia has put up a FAQ on their website answering several questions about the acquisition.