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Intel Corp. and Nvidia Corp. have restarted talks about possible acquisition of the latter by the former, a recent market rumour claims. To make the rumour about a merge between the two companies that would not result into significant synergies even more weird, it is believed that Jen-Hsun Huang, a co-founder and chief executive of Nvidia, may become the head of the new company.

Huge companies, such as Intel and Nvidia, usually meet with each other to discuss potential collaborations, strategic unions, cooperation or even mergers and acquisitions. For example, after Advanced Micro Devices acquired ATI Technologies in 2006, Intel proposed to acquire Nvidia. The companies held a number of meetings, but Nvidia refused the take-over, just like it rejected acquisition by AMD earlier that year as it wanted Jen-Hsun Huang to become the chief executive officer of the new company. Intel then proposed Nvidia to license its GeForce graphics cores and integrate them into Core i-series “Ivy Bridge” and “Sandy Bridge” processors, which Nvidia also turned down.

As the chief executive officer of Intel – Paul Otellini – plans to retire in May ’13, the company is naturally looking for a decent replacement. Since Jen-Hsun Huang can clearly be a candidate for the position, Intel’s management recently held a meeting with Nvidia’s management to discuss potential acquisition once again, according to a report from BrightSideOfNews web-site, which cites a new market rumour.

The developments of relationship between the two companies are kept secret, so nobody will know anything about the proceedings until the deal is finalized.

While the discussions may be in place, it is hard to imagine that the transaction will actually take place. There are numerous reasons for that, including vast differences in corporate culture; little synergy between the two companies and potentially loads of excessive assets and/or people; inability to negotiate about the price that would satisfy both parties.

Intel and Nvidia did not comment on the news-story.

Tags: Intel, Nvidia, AMD, Business

Discussion

Comments currently: 39
Discussion started: 12/14/12 11:19:10 AM
Latest comment: 12/20/12 06:47:57 PM
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[1-10]

1. 
Jen-Hsun Huang, don't sell out to Intel! You have a great thing going for gaining traction in HPC and Tegra.

Also, if these 2 merge, with the amount of combined resources and market control they would have together, AMD would be finished for sure because Nvidia would get full access to Intel's world's leading manufacturing fabs. Then once AMD is out for the count, NVIntel would own the entire CPU+GPU market for all laptops/desktops. Next, prices would rise and we'd have no say in it.
23 19 [Posted by: BestJinjo  | Date: 12/14/12 11:19:53 AM]
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2. 
I don't think this will happen, doesn't make sense while you look at the current state on each company.
23 6 [Posted by: nitro912gr  | Date: 12/14/12 11:59:12 AM]
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- collapse thread

 
Well, the only area where Intel isn´t as good as they probably wish, is graphics.
So trying to get together with NVidia isn´t really surprising i think. If they´re correct on the details of the deal, THAT is surprising.

And NVidia is in enough potential trouble financially to be much more interested now...
6 5 [Posted by: DIREWOLF75  | Date: 12/14/12 02:11:06 PM]
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Nvidia has no financial trouble. They are doing well, have no long-term debt and Tegra and high performance computing Tesla businesses are growing. Revenue and earnings are growing:

http://investing.business.../earnings.asp?ticker=NVDA

17 6 [Posted by: BestJinjo  | Date: 12/14/12 06:16:21 PM]
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I said POTENTIAL. They are currently in the middle of renegotiating fab contracts with TSMC.

Much of their production have less than great yields, and they are only paying for chips that come out working, and TSMC is NOT happy about that, because they have to pay for every botched chip even though the problem is caused by NVidias less than stellar design(in terms of production efficiency).

If TSMC forces NVidia to pay the full costs of production and NV doesn´t fix the yield issue at all, then they will be in BIG trouble within a year. Not a likely scenario, but the risk is obvious as TSMC have gotten rather pissed off with NV lately not bothering much with design yields because they dont have to pay for the bad chips.

Also obviuosly, TSMC doesn´t want NV to go down in flames, and probably wont push too far, but it´s almost guaranteed that the new deals will be more twosided.
9 2 [Posted by: DIREWOLF75  | Date: 12/15/12 02:57:11 AM]
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You can't say "is in enough potential trouble" and imply the future possibility of financial trouble because is a present tense. Your entire sentence was confusing then since "is" implies it's already in trouble and I showed you that it isn't. You are just assuming NV will be in trouble if it sticks with TSMC but you haven't provided any support for that assertion. NV already renegotiated the contract with TSMC on a per wafer basis, rather than a per die basis and they are a profitable as ever.
0 0 [Posted by: BestJinjo  | Date: 12/16/12 10:28:34 PM]
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show the post
3 16 [Posted by: Avon4Balls  | Date: 12/15/12 04:05:51 PM]
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Why are you posting here using your 2 aliases - Avon and 789. I thought we cleared that one up yesterday. USE ONE LOGIN PLEASE.
15 4 [Posted by: linuxlowdown  | Date: 12/15/12 04:11:36 PM]
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show the post
3 14 [Posted by: Avon4Balls  | Date: 12/15/12 04:18:09 PM]
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I accept that you have no insight into your disassociative identity disorder. But please keep taking your medicine dude because you're fitting the profile of socially awkard loner with strange ideas capable of anything.

USE ONE LOGIN ONLY FOR YOUR RADICAL VIEWS.
17 4 [Posted by: linuxlowdown  | Date: 12/15/12 06:17:03 PM]
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Linuxlowdown,
Please refrain from feeding trolling behaviors of such posters. Just ignore them. I will do the cleaning up of blatant flaming or attempts at derailing the thread.


Thank you.
3 1 [Posted by: vanakkuty  | Date: 12/16/12 10:31:10 PM]
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Thanks Sheriff for walking into town. This felt like the Wild West of tech forums at times. Knowing someone's policing means I can be relieved of my self-appointed anti-troll duties. I was honestly getting tired of it but I wasn't going to stand down either. Now I can talk pure tech again. I really enjoy Anton's news and analysis. I hope to help enrich the site with the other great guys here.
1 0 [Posted by: linuxlowdown  | Date: 12/17/12 09:16:38 AM]
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No problem Linuxlowdown

Happy to serve.
0 0 [Posted by: vanakkuty  | Date: 12/17/12 11:00:57 AM]
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3. 
people people people it's a rumour i highly doubt intel is going to merg with nvidia and make Hsun Huang the ceo of the new company that would make no sense to see a much larger company give way to a smaller company and have it's ceo be head of the intel division as well, if anything Nividia will merge with Intel and intel will buy out the remainder shares of the company much like AMD did with ATI and make it into its own separate gpu division. if this did happen AMD is really fucked, intel would have all the advantages of an gpu and cpu in the apu market with an nvidia gpu onboard.
17 3 [Posted by: SteelCity1981  | Date: 12/15/12 03:03:55 PM]
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- collapse thread

 
FTC will be against the merger. It won't be allowed for some of the reasons you point out. But stranger things have been allowed to happen in the USA - as we've seen the results of in recent days.
18 4 [Posted by: linuxlowdown  | Date: 12/15/12 04:15:16 PM]
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On what grounds could the FTC stop the merger after allowing the AMD/ATI merger?
0 0 [Posted by: OldWarrior  | Date: 12/19/12 07:16:11 PM]
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4. 
Jen-Hsun Huang a "candidate" to be CEO of Intel, what a laugh, unless you mean he could run them into the ground.
16 4 [Posted by: beenthere  | Date: 12/15/12 06:40:35 PM]
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- collapse thread

 
Nvidia has just had a record quarter and made hundreds of millions in PROFIT with no debt.What are you smoking?
13 3 [Posted by: beck2448  | Date: 12/15/12 08:34:33 PM]
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5. 
Micosoft at the moment has an option for the acquisition of Nvidia.
I don't think Microsoft would like the manufacturer of its Surface SoC to be acquired by the (de facto) only x86 company in the game.
1 1 [Posted by: Marburg U  | Date: 12/16/12 02:36:49 PM]
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6. 
If this happens gaming industry on PC will be dead.GPU evolution will stop.

Intel will acquire technology for their APU-s and kill most of the Nvidia business in other areas.

On the other hand a huge "monster" will be created.

Only Chinese CPU/APU manufacturers could fight such Hydra if they will ever appear.

Not good for consumers ,i hope it doesn t happen.
4 0 [Posted by: HeadlessBottleneck  | Date: 12/16/12 04:03:11 PM]
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7. 
If VIA and Nvidia would fusion it would be something else.We could see some real competition.
4 0 [Posted by: HeadlessBottleneck  | Date: 12/16/12 04:05:19 PM]
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8. 
rumors...
2 0 [Posted by: TAViX  | Date: 12/17/12 03:07:46 AM]
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9. 
Will Nvidia add value to Intel in the aforementioned Tablet market? If that is the way of the future, isn't Nvidia already at risk because Tablets do not use the High Power/High Margin GPU's that make Nvidia profitable?
1 0 [Posted by: OldWarrior  | Date: 12/19/12 07:33:59 PM]
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10. 
Why would a 500 pound chipset/CPU gorilla be interested in merging with 50 pound (in comparison) fabless GPU/SOC tech brand.........more like a small meal/snack than a merger in the hope of improving their own already far superior fab node/capacity but crappy (in comparison) GPU's that are a good 3 years behind NV/AMD in GPU design and driver optimization
1 0 [Posted by: alpha0ne  | Date: 12/20/12 06:47:57 PM]
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