Microsoft to Acquire nVidia?
http://sg.news.yahoo.com/microsoft-pact-nvidia-cou...
http://www.rumorpedia.net/microsoft-sets-up-acquis...
Interesting move on Microsoft's part. They have no plans to acquire nVidia in the immediate future, but since Windows 8 is launching on ARM, I'm going to assume that Microsoft is very interested in nVidia's Tegra ARM technology. Additionally, this prevents Apple, who has had its eye on nVidia for some time, from placing a bid. nVidia is definitely a prize. They're one of only two big players in the graphics processing industry (the other being AMD, which acquired ATi Technologies about 6 years ago) and their mobile technology is already gaining a lot of traction.
I'm not sure if this move will eventually lead to an acquisition, but if it does, this would be a blockbuster deal. Thoughts?





That's an interesting move on
That's an interesting move on Microsoft's behalf, I've never seen a strategical pre-takeover move like that before. I don't know if we'll see any takeover in the short term, but that would be a pretty massive deal. I've long thought that nVidia was overlooked by the market and should trade better than they do... they are very much what Qualcomm is to the mobile market in the laptop/desktop space (granted, the PC market is horrific).
I'm sure it wouldn't be a huge blow to Apple though, they are minting PLENTY of money outside of their computer/laptop business and could easily make a play for another smaller provider if they really needed it
"You've got to belong to it."
OK lets put this one to bed.
OK lets put this one to bed. It's a matching right related to the Xbox 1 agreement...from 2000.
On March 5, 2000, we entered into an agreement with Microsoft in which we agreed to develop and sell graphics chips and to license certain technology to Microsoft and its licensees for use in the Xbox. Under the agreement, if an individual or corporation makes an offer to purchase shares equal to or greater than 30% of the outstanding shares of our common stock, Microsoft may have first and last rights of refusal to purchase the stock. The Microsoft provision and the other factors listed above could also delay or prevent a change in control of NVIDIA.
http://www.sec.gov/Archives/edgar/data/1045810/000...
Also, Jen-Hsun doesn't strike me as the kind of CEO who'd take anything less than a monstrous check to sell. NVidia's culture is such that, aside from a very limited number of acquisitions (PortalPlayer and recently Icera come to mind), they'd rather build it in house than buy it, indicating a pretty significant degree of pride. It also would lock MSFT out of using any AMD (incl former ATI) tech in future products - not sure why MSFT would pay up to do that, esp given that X360 uses ATI graphics...