Intel and Nvidia in Talks About Merge - Jen-Hsun Huang May Lead New Company

[Nelly]

Intel Corp. and Nvidia Corp. have restarted talks about possible acquisition of the latter by the former, a recent market rumour claims. To make the rumour about a merge between the two companies that would not result into significant synergies even more weird, it is believed that Jen-Hsun Huang, a co-founder and chief executive of Nvidia, may become the head of the new company.

Huge companies, such as Intel and Nvidia, usually meet with each other to discuss potential collaborations, strategic unions, cooperation or even mergers and acquisitions. For example, after Advanced Micro Devices acquired ATI Technologies in 2006, Intel proposed to acquire Nvidia. The companies held a number of meetings, but Nvidia refused the take-over, just like it rejected acquisition by AMD earlier that year as it wanted Jen-Hsun Huang to become the chief executive officer of the new company. Intel then proposed Nvidia to license its GeForce graphics cores and integrate them into Core i-series “Ivy Bridge” and “Sandy Bridge” processors, which Nvidia also turned down.

As the chief executive officer of Intel – Paul Otellini – plans to retire in May ’13, the company is naturally looking for a decent replacement. Since Jen-Hsun Huang can clearly be a candidate for the position, Intel’s management recently held a meeting with Nvidia’s management to discuss potential acquisition once again, according to a report from BrightSideOfNews web-site, which cites a new market rumour.

The developments of relationship between the two companies are kept secret, so nobody will know anything about the proceedings until the deal is finalized.

While the discussions may be in place, it is hard to imagine that the transaction will actually take place. There are numerous reasons for that, including vast differences in corporate culture; little synergy between the two companies and potentially loads of excessive assets and/or people; inability to negotiate about the price that would satisfy both parties.

Intel and Nvidia did not comment on the news-story.

Source

 

[Kaapstad]

This sounds like April Fool 5 months early

 

[spoffle]

I find it hard to believe that Intel would accept Jen-Hsun Huang running the "new company".

 

[Kaapstad]

I would believe it if intel were to take over nvidia and dump Jen-Hsun Huang.

 

[humbug]

Very interesting.

GPU's are going to play an ever increasing role in computing, from mobile phones to cloud servers and everything in between.

In that Nvidia don't need Intel, Intel on the other hand would be greatly helped by such a thing.

That means Nvidia hold all the cards with Intel being the ones having to bend over.
And Nvidia, they like things just the way they are.

Edit- Intel are buying back $6bn of their own stock, i wonder what they want that for?

 

[spoffle]

I would believe it if intel were to take over nvidia and dump Jen-Hsun Huang.

Now that's believable, and would make a lot of sense if they did basically what AMD did with ATi. Buy them up but keep the GeForce brand.

Very interesting.

GPU's are going to play an ever increasing role in computing, from mobile phones to cloud servers and everything in between.

In that Nvidia don't need Intel, Intel on the other hand would be greatly helped by such a thing.

That means Nvidia hold all the cards with Intel being the ones having to bend over.
And Nvidia, they like things just the way they are.

Edit- Intel are buying back $6bn of their own stock, i wonder what they want that for?

GPUs are already playing a very important role in computing and mobile computing.

Incidentally, nVidia aren't doing too well in this regard anyway.

The top performing mobile chips are ARM based basically, nVidia and Intel are struggling to compete within this area.

nVidia has to resort to its usual tactics of software locks to make it look like they have a lot more performance than the competition (Tegra Zone games on Android for example).

 

[straxusii]

Core i9 - hand tooled in oak

 

[keysersoze]

Incidentally, nVidia aren't doing too well in this regard anyway.

The top performing mobile chips are ARM based basically, nVidia and Intel are struggling to compete within this area.

Nvidia Tegra 2/3/4 uses ARM CPU cores.

 

[panyan]

Intel are buying back $6bn of their own stock, i wonder what they want that for?

I believe that what happens when a company needs cash for a new project is that they create new shares, sell them to fund the project and then with the profit from the project they buy back their shares.

Having loads of shares leads to instability so buying back shares is a good idea if you can afford it

 

[Pottsey]

Nvidia Tegra 2/3/4 uses ARM CPU cores.

I think he meant GPU’s. The Tegra 3 GPU is over 300% slower than the ARM GPU and around 600% slower than the SGX GPU.

 

[OptimaLnrg]

big business, the way its meant to be played.

..inside.

 

[Gregster]

It will not happen.

 

[eddyr]

I could see some form of collaboration but not a merger. Makes you wonder what their up to.
The obvious ones that pop to my head are integrating a variant of nvidia's gpu tech with an Intel cpu or maybe using Intels 22nm fabs. Both have their pros and cons for either company. Who konws.

 

[Cleeecooo]

Edit- Intel are buying back $6bn of their own stock, i wonder what they want that for?

I was initially confused by this, thinking they were buying back $6b of CPUs

 

[Gtiracer]

Intidia

 

[AtreuS]

Very possible i guess.

Imagine how much money it would cost intel R&D to get upto the point that nvidia is at, not counting all the patents.

Intel are leaning towards not socketed cpus ( soldererd onto the mainboard ) so it seems logical that they want to vastly update the onboard GPU technology as well to keep OEMs happy.

 

[flopper]

hahahaha

 

[FoxEye]

Intidia

Invidel

 

[drunkenmaster]

I believe that what happens when a company needs cash for a new project is that they create new shares, sell them to fund the project and then with the profit from the project they buy back their shares.

Having loads of shares leads to instability so buying back shares is a good idea if you can afford it

In this case they borrowed the money from a bank to buy back shares. Largely because the tech market was at the base of a mini crash. The AMD shares buy was contractually obliged and the whole market seemed to know it, AMD shares tanked, Intel went down loads, Nvidia, just about everyone has been going down, and the two share buys have stopped the rot and its coming back up, small amounts but seemingly solidly upwards(at a very weak time of year) for tech stocks.

Basically Intel are doing nothing more than playing the shares game of buy low, sell high game. At current prices it made more sense to them to have more shares of their company under their control. Either they keep more profits or sell some of those shares in the future and pay the money back either way.

Intel are a company that likely don't and won't need to sell money to fund R&D any time soon, AMD, even Nvidia, and plenty of others without much cash on hand, but Intel have stupid cash, stupid profitability and no need to waste profits on interest payments with the money they have.

 

[Freddie1980]

The story sounds like rubbish someone thought up to get site traffic up then I saw the "news" came from brightsideofnews which means the story less credability then Ed Milliband.

It makes zero sense for Intel to buy Nvidia as Nvidia has nothing to offer. If Intel wanted to make its own high end GPU's it would be cheaper to develop their own