Microsoft Has Acquisition Deal With Nvidia

fellix

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Microsoft and Nvidia have an agreement in place that spells out terms relating to a possible acquisition of the graphics and mobile processor manufacturer, regulatory documents indicate.

The deal gives Microsoft the exclusive right to match any offer for 30% or more of Nvidia's outstanding shares by a third-party, according to an SEC filing reviewed by InformationWeek.
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:oops:
 
Why let this cat out of the bag now? Or is it because neither cares about it happening?

Buried deep within a quarterly earnings report Nvidia filed last week was a warning to investors that a number of factors could derail an acquisition by a third-party.

Maybe someone's trying to buy them. :p
 
That report says that nv's hostile takeover will be difficult. Hence, I'd expect that they trying to sell themselves is more likely.
 
That report says that nv's hostile takeover will be difficult. Hence, I'd expect that they trying to sell themselves is more likely.

Only if they assume Microsoft will even exercise the option to block such an attempt. They may not even care.
 
If this deal was signed before xbox1, I wonder what kind of deal MS negotiated with IBM. :)

They might care today if they choose nv for xbox720.
 
Hmm, makes me realize this agreement actually makes sense in the context of the original XBOX, where the GPUs were supplied by NVidia. I guess this no longer the case since XBOX 360 onward.
 
It was only a matter of time till NV sold out, but I expected IBM or Apple as primary candidates. MS doesnt gain that much, but I can see why they would want NV:

1) Total control of Tegra soc for Win8 and forward. They essentially following Apple footsteps.

2) NV GPU's for consoles.

3) Company pushing DX also makes GPU's... This could get underhanded.
 
i would have thought amd would be the better purchase. The only x86 player aside from intel and they also get ati out of it.

MS wouldn't need anyone for a next gen console or any hardware
 
No one is saying that MS is actually going to buy NV...

I know , i just would think tha this deal would have been better done with AMD.

In fact MS buying AMD would be a smart use of all that cash they have. Way better than skype
 
no not really

buying NV or AMD makes about as much sense for MS as buying Ford or GM. The NV thing was just a way to protect their xbox graphics deal, I expect they didn't need it with AMD because that deal was structured much differently.

Even with their first refusal clause I expect all that would happen is a company would have to negotiate with MS to make the buy, if MS ever wanted to own Nvidia I expect they'd just buy them.
 
i would have thought amd would be the better purchase. The only x86 player aside from intel and they also get ati out of it.

MS wouldn't need anyone for a next gen console or any hardware
It would seem nice, but anyone purchasing AMD voids their x86 license, thus making it less attractive target. However AMD and Intel after trial last year renegotiated their cross-patent contract, not sure if that clause is still active.
 
So lets say for instance i offer nv 1billion for 30% of their shares,
does this give ms the right to say ok we will also offer 1billion? and whats the exclusive bit does that mean no one can come along and say I offer 1.1billion
or if I offer nv 1billion can ms just say to nv no you cant sell ?
 
So lets say for instance i offer nv 1billion for 30% of their shares,
does this give ms the right to say ok we will also offer 1billion? and whats the exclusive bit does that mean no one can come along and say I offer 1.1billion
or if I offer nv 1billion can ms just say to nv no you cant sell ?

Pretty sure it just means that MS can match any offer that takes in more than 30% of NV's shares. I assume the exclusive part is that NV can't have a similar agreement with someone else.
 
I don't quite see how an old deal could be relevant for stock holders now if it wasn't in the past, sounds to me like a new deal ... so NVIDIA going into the next xbox.
 
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