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[6]: yeah... no.
by tylerdurden on Mon 6th Jun 2011 18:06 UTC in reply to "RE[5]: yeah... no."
tylerdurden
Member since:
2009-03-17

Sigh, yes it is pure speculation, because that filing says nothing about Microsoft intending to purchase NVIDIA, AT ALL.

It is a risk because it reduces NVIDIA's board ability to negotiate with a 3rd party if said party is interested in buying the company and offer a high price for their shares.

The mission of a publicly traded company is increasing stock holder's value, first and foremost. That is why this info was released in the SEC filing. So if there is a constrain to said increase in value, and being purchased is a common "exit strategy," then the release makes sense. Does that mean they are getting purchased, nope. The filing also states that Intel and AMD are their direct competitors and they could significantly impede NVIDIA's growth. Does that mean that is the case? Nope, it simply is stated as a clear and present danger to NVIDIA's investors and their stock bottom line.

As I said, there is no hint at NVIDIA being bought by Microsoft. But rather that if NVIDIA were to be bought, Microsoft would have an important say in OK the purchasing of the company. Which is something completely different, and the reason why this "article" and the extrapolations it made were/are ridiculous.

Edited 2011-06-06 18:11 UTC

Reply Parent Score: 2