Linked by timl on Sun 5th Jun 2011 16:25 UTC
Microsoft "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." The agreement appears to be over 10 years old, dating back to the time of the contract for the GPU of the original X-Box. It has likely gained relevance again now that Microsoft allegedly wants to more closely control hardware of tablets running its upcoming Windows 8 OS.
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RE[2]: yeah... no.
by tylerdurden on Sun 5th Jun 2011 19:49 UTC in reply to "RE: yeah... no."
tylerdurden
Member since:
2009-03-17

That filing says nothing remotely related to this news.That was a release about the original XBOX graphics partnership. 10 years ago.

That partnership ended rather badly, given the contractual obligations MS strong armed intel and nvidia into. It is no coincidence the 360 went on to be based on IBM and ATI technologies.

Reply Parent Score: 3

RE[3]: yeah... no.
by malxau on Sun 5th Jun 2011 20:38 in reply to "RE[2]: yeah... no."
malxau Member since:
2005-12-04

That filing says nothing remotely related to this news.That was a release about the original XBOX graphics partnership. 10 years ago.

That partnership ended rather badly, given the contractual obligations MS strong armed intel and nvidia into. It is no coincidence the 360 went on to be based on IBM and ATI technologies.


This filing is what the article is referring to. It's in a 2011 10-Q. NVDA still believes the agreement "may" remain enforceable or the provision wouldn't be listed as a current "risk factor" in 2011. It is not relevant that the 360 uses different graphics technology; the issue is merely whether the original agreement remains in force.

Reply Parent Score: 3

RE[4]: yeah... no.
by tylerdurden on Sun 5th Jun 2011 20:56 in reply to "RE[3]: yeah... no."
tylerdurden Member since:
2009-03-17

... and that filing says nothing about any "acquisition" that the article speculates.

It is an old agreement, which companies are supposed to disclose esp. when they involve IP exchange. And given the nature of DirectX development it makes perfect sense, since that is shared MS-NV IP, MS got the right to have a say if a competitor of MS was to buy NVIDIA and thus control that IP.

If anything this filing displays the strong arm negotiation which NVIDIA had to concede in order to supply the graphics chips to MS. Thus, my point that the HW partnership between NVIDIA and MS was less than stellar for NV.

BTW, MS already has their own HW group.

Edited 2011-06-05 21:04 UTC

Reply Parent Score: 4