UPDATE: Adding background details.
Reuters news-agency has reported that Intel Corp. may acquire graphics chip designer Nvidia Corp. The announcement may be made in less than 24 hours from now, it is claimed. Sources of the unofficial information could not be determined.
“There is speculation that Intel will make an acquisition announcement tonight,” said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.
Terms of the possible deal are unclear. Nvidia’s market capitalization is currently nearly $11 billion, which means that the company may be sold for $14 – $15 billion, whereas Intel Corp. only has $7.64 billion in cash currently.
Rumours about possibility of Nvidia acquisition by Intel Corp. have been circuilating since July, when Nvidia rival ATI Technologies announced take over by Advanced Micro Devices, the arch-rival of Intel, for $5.4 billion.
Neither Intel Corp., nor Nvidia Corp. commented on the news-story.
Comments currently:
15
Discussion started: 10/05/06 04:02:09 AM
Latest comment: 02/08/07 07:25:30 AM
[1-15]
1.
hmm dosn't make sense.. why would they hire former nVidia, and other graphics chip makers employees, if they were just planning on buying nVidia??
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Posted by: Kim Leo
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Date: 10/05/06 04:02:09 AM]
2.
This will totally destroy the competition.
Although Intel would have to find the cash first, buying nVidia could take several years to compensate.
[
Posted by: 1234
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Date: 10/05/06 04:14:50 AM]
3.
Was this not at one point considered and discarded due to prevailing antitrust issues regarding intel?
However, if we look at the change in scenery that exists now, it would certainly explain why dell all of a sudden seems to be "allowed" to sell AMD cpus, it would open doors to arguments that intel isn't such the controlling monopolist it was...
Much like how nVidia bought ULI, and stopped supplying SBs to ATI, this would be a sure fire way to kill off much of the supply of AMD Chipsets.
Not great for the industry, but I am sure a lot of lawyers would get fat paychecks fighting for and against this one :)
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Posted by: Darkskypoet
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Date: 10/05/06 06:13:17 AM]
4.
Intel just got done laying off thousands of workers, and reorganizing to be more efficient, and leaner. Now they are going to spend billions to add a behemoth like Nvidia? I dont think so.
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Posted by: The_Starfox
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Date: 10/05/06 07:52:54 AM]
5.
Great!!!
Copetition got more Intense.
Whoever Wins the Customer Loses
[
Posted by: Watch Out
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Date: 10/05/06 08:09:04 AM]
6.
I'm not taking this threat seriously. It seems like a ploy by Nvidia stock owners to press the price back above the June-July drop so they can sell off.
Short it or sell it if you have it.
[
Posted by: Mallissin
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Date: 10/05/06 08:18:31 AM]
7.
FUD!!
[
Posted by: Mgz
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Date: 10/06/06 12:26:33 AM]
8.
I hope that this isn't going to happen.
I like Nvidia,but not Intel .
[
Posted by: sticky
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Date: 10/06/06 02:40:43 AM]
9.
AMD acquired (not formally, the deal is 100% done) for chipsets so they could build "platforms" - AKA the CPU/NB/SB/IGP so they could compete with Intel. ATI's side business of middle- and higher-end GPU's is a nice side business in that it generates lots of profits. But AMD wants ATI so they can go after the corporate buy of laptops/desktops/servers with complete platformization. That has been Intel's trump card for 20+ years - they make all the key ingredients of a PC/Server (minus RAM and drives). This vertical integration is the KEY. Nothing else matters. AMD and Intel win or lose at the end of the day based on sales to corporate America. Not gamers.
My bet is Intel cozies up to Nvidia a bit for some flashy "mindshare" type products, but at the end of the day, they have their GMA, NB, SB, Audio, and processors - they don't need anyone else.
And the 60% share of video that Intel has is perfectly adequate for corporate America who stares at powerpoints and excel all day.
[
Posted by: Mark1
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Date: 10/06/06 10:30:55 AM]
10.
Intel could also be after SLi w/ QuadroFX cards
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Posted by: 1234
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Date: 10/07/06 02:22:34 AM]
11.
Maybe Intel hopes to raise more money by laying off 10% of workforce and obtaining more sales from the growing conroe chips. If not, it would have been completely impossible to acquire a giant company like Nvidia. AMD would be laughing at them right now. Since AMD has also been badly wounded by acquiring a firm like ATI. Intel would have to defer this plan till next year as I perceive this with the look of things considering the heavy price involved.
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Posted by: Tunde Adeolu
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Date: 10/08/06 09:09:14 AM]
12.
I want to see the outcome of something like this. Two gigantic companies fusing into one. I just hope things don't change too much if something like this was to happen.
[
Posted by: Toodle
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Date: 10/08/06 01:15:32 PM]
13.
If such a thing occurs, then well see new GPUs every month ! (Which is not neccessarily a good thing since it means that new tech is old tech quickly)
[
Posted by: OutpostCommand
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Date: 10/12/06 01:20:58 AM]
14.
It might, but then again it might not.
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Posted by: www.gamersworldbd.com
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Date: 10/12/06 01:22:11 AM]
15.
AMD+ATI was a bad idea in my opinion...
This will also be a bad idea... even though I prefer the NVIDIA and Intel over AMD/ATI.
They'll win, we lose.
[
Posted by: Random visitor
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Date: 02/08/07 07:25:30 AM]
[1-15]
Intel May Acquire Graphics Chip Maker Nvidia [UPDATED].
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