Digitimes: NVIDIA-VIA merger talks failed but may resume. [Analysis]

[B3D News]

According to Digitimes, NVIDIA and VIA already discussed a potential merger (why am I not surprised?) but the two couldn't agree on a price (why am I even less surprised?) - although given VIA's deteriorating financial position, Digitimes expects the talks to eventually resume.

Read the full news item

 

[epicstruggle]

It is very likely that within the year NV will have to merger/buy either VIA, transmeta, or some other company that will give it a foothold in the CPU market. I dont think NV can survive as just a graphics company.

 

[Sound_Card]

It is very likely that within the year NV will have to merger/buy either VIA, transmeta, or some other company that will give it a foothold in the CPU market. I dont think NV can survive as just a graphics company.

If Nvidia wanted them that bad, they would of paid the price.

 

[epicstruggle]

If Nvidia wanted them that bad, they would of paid the price.

If they overpay they might not have the cash to invest in R&D that will be necessary to compete. Intel has really put a bind on many companies.

 

[Sound_Card]

If they overpay they might not have the cash to invest in R&D that will be necessary to compete. Intel has really put a bind on many companies.

So you suggest that Nvidia is in a Catch 22?

Just how much is Via worth?

 

[epicstruggle]

So you suggest that Nvidia is in a Catch 22?

Just how much is Via worth?

Last time I checked they had something like 1.5+billion in the bank. I think digitimes said via might go for around 500 million. Leaves around a billion for R&D. How much does intel spend on it?

 

[Sound_Card]

Last time I checked they had something like 1.5+billion in the bank. I think digitimes said via might go for around 500 million. Leaves around a billion for R&D. How much does intel spend on it?

They wont really need to compete in high performance CPU sectors or servers. At least not yet I reckon. They could go down the route of low profile performance per watt CPUs with graphics functionality. Could be very appealing to notebook OEM's and low cost desktops.

 

[aaronspink]

They wont really need to compete in high performance CPU sectors or servers. At least not yet I reckon. They could go down the route of low profile performance per watt CPUs with graphics functionality. Could be very appealing to notebook OEM's and low cost desktops.

Thats been tried, I'm pretty sure that company is now no longer....

It is hard, very hard to gain a foothold in something like the x86 processor market without a large amount of resources. And gets harder every year. Also its really hard without a fab! x86 is all about volume to offset the high costs of design and test.

Another way to look at it, investing in an x86 or volume desktop processor maker is a quick way to go broke. After 20 years, the only two companies still around are the two companies that started it, and their are in the almost exact same positions as they were are the start. The corporate graveyard is littered with companies that tried to cash in on the x86 processor train and failed.

And anything that really makes money in the x86 hardware ecosystem eventually gets subsumed in the vast majority of the market place onto the processor itself. Its a hard market to be in. I'm not sure nVidia can afford to divert too much attention away from their core biz of graphics and enabling technologies for graphics without eventually being squeezed out.

Aaron Spink
speaking for myself inc.

 

[shiznit]

When AMD goes belly up Nvidia will buy it up like it did 3dfx, their market cap is $10 bil compared to AMD's $3 bil. Anti-trust laws tend to be 'flexible' during bad recessions and when important US companies are failing.

 

[epicstruggle]

When AMD goes belly up Nvidia will buy it up like it did 3dfx, their marked cap is $10 bil compared to AMD's $3 bil. Anti-trust laws tend to be 'flexible' during times bad recessions and when important US companies are failing.

This could very well happen, however there is one sticking point. I believe a nice chunk of the stock is being held for a Dubai investment group when AMD got a loan from them last summer.

 

[nutball]

I wonder if this is relevant to this topic? (Sorry if it's been posted elsewhere!)

http://www.theregister.co.uk/2008/04/24/sun_buys_montalvo/

 

[Jawed]

Nvidia may take up VIA shares through private placement, say sources

It is very likely that within the year NV will have to merger/buy either VIA, transmeta, or some other company that will give it a foothold in the CPU market. I dont think NV can survive as just a graphics company.

A bit more than a year and not really that significant:

http://www.digitimes.com/news/a20090327PD204.html

VIA's new issue shares won't be on sale any time soon, either.

Jawed

 

[Jawed]

Dismissal of VIA investment rumours

http://www.digitimes.com/news/a20090423PD202/nvidia_ceo_dismisses_via_investment_rumors.html

Jen-Hsun Huang, CEO and president of Nvidia, has said that the chipmaker's current relationship with Taiwan's VIA Technologies only extends to cooperation to deliver support for VIA CPUs on its upcoming Ion 2 chipset platform. Huang stated that Nvidia has no plans to make any investment in VIA, dismissing recent rumors that the two companies are in talks for a financial deal.

Jawed