Analyst Expects NVIDIA to Acquire AMD Despite Chances of Losing x86 License.

[RAMMAN]

Buy AMD (without x86 licence) and sold ati? What do they keep? Hector?

as i was saying, perhaps keeping the amd brand name would allow nvidia to keep the x86 license.btw hector would quite literally be the first one to get kicked out if this happens

[Starscream]

Since when does anyone sane listen to an analyst?

true mostly cause most analists that make such comments about tech companies dont know jack snot about the hardware.

Btw who says that Nvidia would lose the license if they would buy AMD?
(i higly doubt nvidia would buy amd but i just want to argue :P).

Ofc legally if someone would buy AMD then AMD would lose the license seeing it isnt transferrable.
But if AMD would lose the license the only big company making x86 CPUs would be intel wich would basicly suck for all of us. ANd i doubt the anti trust organisations would like such a situation were you would only have Intel in the mainstream CPU market.

So technically there is a chance that Intel would make an acception and would allow AMD to keep the license if someone bought AMD.
That or Intle would need to find another company that wants to make x86 CPus and give them a license.

[MaxxxRacer]

FTC would not allow it to happen. no way no how.

[nemrod]

Btw who says that Nvidia would lose the license if they would buy AMD?
(i higly doubt nvidia would buy amd but i just want to argue :P).

6.2. Termination for Cause.
---------------------

(a) A party may terminate the other party's rights and licenses
hereunder upon notice if the other party hereto commits a
material breach of this Agreement and does not correct such
breach within sixty (60) days after receiving written notice
complaining thereof. In the event of such termination, the
rights and licenses granted to the defaulting party shall
terminate, but the rights and licenses granted to the party
not in default shall survive such termination of this
Agreement subject to its continued compliance with the terms
and conditions of this Agreement.

(b) A party hereto may terminate this Agreement upon sixty (60)
days written notice of termination to the other party given at
any time upon or after:
/.../
(7) the other party undergoes a Change of Control. For
purposes of this Section 6.2(b)(7), "Change of Control"
shall mean a transaction or a series of related
transactions in which (i) one or more related parties
who did not previously own at least a fifty percent
(50%) interest in a party to this Agreement obtain at
least a fifty percent (50%) interest in such party, and,
in the reasonable business judgment of the other party
to this Agreement, such change in ownership will have a
material effect on the other party's business, or (ii) a
party acquires, by merger, acquisition of assets or
otherwise, all or any portion of another legal entity
such that either the assets or market value of such
party after the close of such transaction are greater
than one and one third (1 1/3) of the assets or market
value of such party prior to such transaction.

[Starscream]

long story

Pls read the rest of my post.

If you had read my post you would know that i know that officially AMD would lose its license if someone buys them and if you had read my post you would alos know why i think there is a chance that Intel would make an exception.

edit:
Anyone have a realistic estimate of how much AMD in its current state would cost?

[n91htmare]

Not gonna happen.

Analyst must have gotten a really good supply of whatever he/she was smoking. Potent stuff it must be.

[Shintai]

How would nVidia pay for this again? AMD got what, 7-8billion in debt, the company is worth 5-6billion. So make that 7-8 aswell for a buy.

And nVidia was worth what again? 12.5billion? Then thats settled. NEVER GONNA HAPPEN!

[RAMMAN]

Anyone have a realistic estimate of how much AMD in its current state would cost?

less than the ati aquisition i would imagine.

[Shintai]

Pls read the rest of my post.

If you had read my post you would know that i know that officially AMD would lose its license if someone buys them and if you had read my post you would alos know why i think there is a chance that Intel would make an exception.

edit:
Anyone have a realistic estimate of how much AMD in its current state would cost?

Intel make an exeption? I can hear the CFO laughing. Its quite cheaper to battle and fit any regulations and such if they could in average raise the price 10-20% as a monopoly. That would be some 5-10billion$ to deal with any "issues" a year.

No way in hell.

Also since AMD would legally be out of the battle. No foul play. Then there is nothing you can use against Intel to get someone to give nVidia a license.

[Starscream]

Intel make an exeption? I can hear the CFO laughing. Its quite cheaper to battle and fit any regulations and such if they could in average raise the price 10-20% as a monopoly. That would be some 5-10billion$ to deal with any "issues" a year.

No way in hell.

Also since AMD would legally be out of the battle. No foul play. Then there is nothing you can use against Intel to get someone to give nVidia a license.

tbh i wouldnt be so fast with saying things like ''no way in hell''

Like i said it would be fully legal of Intel to take away the license if such a thing happens but them making an exception is a possibility.

[audiofreak]

There are two options:

1. NVIDIA wants Xfire because SLI sucks
2. NVIDIA wants to be able to also forbid Xfire on Intel chipsets

Either way, if that happens I just wish for one thing -- for all the IT industry to go bankrupt.

[villa1n]

Wouldn't matter without a valid x86 license.

and without that x86 license, intel would be a monopoly aka antitrust party.

[Shintai]

and without that x86 license, intel would be a monopoly aka antitrust party.

Monopoly and antitrust party is not the same. Also there are ALOT of monopolies and they work fine. Some need some regulation now and then.

Antitrust is a whole other matter than being a monopoly.

Also Intel is already a monopoly with almost 80% of the market.

Forgot MS? They have 95% of the OS market, not even to talk about other segments.

Its an illusion to think Intel would be hurt in any way to only have VIA or maybe no competitor. The only thing that will happen is a forced regulation on price if they get too greedy. Or if they start to make nVidia GFX cards incompatible without a way for nVidia to make it so.

[Ugly n Grey]

Since when does anyone sane listen to an analyst?

Quote of the day.

Nvidia buying AMD is not a real option imo.

[Qkjhfhaiguihfma]

maybe we could finally move away from x86!!

dream.

[ReverendMaynard]

NOT POSSIBLE.

Why? AMD owns ATi, nVidia acquiring ATi would violate anti-trust laws.

The end.

^^^ +1.

It ain't happening.

[Calmatory]

maybe we could finally move away from x86!!

dream.

Would be great. Sad taht Intel doesn't agree.

[Jamesrt2004]

to combat analyst..

my stepdad's buisness will buy amd...

[Reznik Akime]

6.2. Termination for Cause.
---------------------

(a) A party may terminate the other party's rights and licenses
hereunder upon notice if the other party hereto commits a
material breach of this Agreement and does not correct such
breach within sixty (60) days after receiving written notice
complaining thereof. In the event of such termination, the
rights and licenses granted to the defaulting party shall
terminate, but the rights and licenses granted to the party
not in default shall survive such termination of this
Agreement subject to its continued compliance with the terms
and conditions of this Agreement.

(b) A party hereto may terminate this Agreement upon sixty (60)
days written notice of termination to the other party given at
any time upon or after:
/.../
(7) the other party undergoes a Change of Control. For
purposes of this Section 6.2(b)(7), "Change of Control"
shall mean a transaction or a series of related
transactions in which (i) one or more related parties
who did not previously own at least a fifty percent
(50%) interest in a party to this Agreement obtain at
least a fifty percent (50%) interest in such party, and,
in the reasonable business judgment of the other party
to this Agreement, such change in ownership will have a
material effect on the other party's business, or (ii) a
party acquires, by merger, acquisition of assets or
otherwise, all or any portion of another legal entity
such that either the assets or market value of such
party after the close of such transaction are greater
than one and one third (1 1/3) of the assets or market
value of such party prior to such transaction.

Good lawyer talk. Basically its a means to prevent a third party not within the licensing clause of getting the rights to the technology they wouldn't have rights to in the first place. This keeps out the possibility of a company allowing their selves to be bought out after acquiring a technology.

"They won't grant us the license but will grant you said license. Get the license and we will buy you and give you great benefits."

Also prevents situations that are being presented here. Makes sense when you think about it.

[schtuga]

I think this guy sums it up best.

Another round of rumors has hit the media about Nvidia (NASDAQ: NVDA) buying AMD (NYSE: AMD). Barron's quotes American Technology Research as saying a deal is possible. The reasoning seems simple enough. “The Intel/AMD road-map of integration of the CPU/GPU could pose a risk to Nvidia, and buying AMD propels Nvidia into a formidable competitor for Intel with the upside coming from Huang’s ability to re-architect AMD’s design.”

Dream on. Nvidia has a market cap of just under $15 billion. Its stock is down about 25% this year. Buying a loser like AMD would push its price so low that shareholders would storm the company's headquarters. Nvidia is about to announce earnings. A weak forecast could further eviscerate the shares.

In its last quarter, NVDA has operating income of $248 million on revenue of $1.116 billion. The company had a gross margin of 46% in that period. NVDA has a clean balance sheet with over $1 billion in cash.

Over at AMD the company sports a market cap of $3.8 billion, which makes a deal by Nvidia affordable. That is until Wall St. looks at the $5 billion in long-term debt on the balance sheet. AMD had revenue of $1.77 billion and an operating breakeven before write-offs of $1.6 billion for impaired assets.

Nvidia shareholders have a nice company. AMD is a boat anchor.

Douglas A. McIntyre

http://www.marketwatch.com/news/stor...sh-nvidia.html

[Decami]

The government would not let this happen for shure. Atleast not anytime in the near future. Unless Intel takes off with their plans sometime soon. I almost dought this, they may try, but they will not succeed.

I also agree with the above.

[schnulli]

How would nVidia pay for this again? AMD got what, 7-8billion in debt, the company is worth 5-6billion. So make that 7-8 aswell for a buy.

And nVidia was worth what again? 12.5billion? Then thats settled. NEVER GONNA HAPPEN!

At press time, AMD’s market capitalization was $3.82 billion and it has $1.89 billion in cash. Nvidia Corp.’s market capitalization at press time was $13.01 billion, besides, the company had $1.85 billion in bank.

on day u'll get it

[Disaster_Master]

Nvidia must make there own cpu's whit or whitout x86.

more competition in the cpu market better products en prices for us.

But if this happened Will nvida card work on other platforms ?????

[Starscream]

How would nVidia pay for this again? AMD got what, 7-8billion in debt, the company is worth 5-6billion. So make that 7-8 aswell for a buy.

And nVidia was worth what again? 12.5billion? Then thats settled. NEVER GONNA HAPPEN!

tbh it isnt that Nvidia isnt capable of buying AMD it is just very unlikely.

Yes in cash Nvidia doesnt have the resources todo so but it wouldnt be the first time that 1 company buys another with mostly loaned money.

Due to the fact that Nvidia has been making a good profit in the last few years and that their profit keeps going up and due to Nviidas high market value and AMDs current low market value in theory Nvidia is more then capable of buying AMD.
But cause they would have todo so with mostly loaned money and due to the huge debt that AMD has and ofc the fact that in the near future nvidia will get a new competitor in their main market (Intel) the financial risc in such an undertaking would be simply to high.
So it is possible but it is highly unlikely cause of the huge risc.

The only 2 safe ways for Nvidia to buy AMD is if they would do it as a joint venture with some other company (sharing the cost etc) or if it wouldnt be a takeover but would be a merger instead were Nvidia would be the dominant partner and ATI would be sold of.


And tbh Shintai like always you immediatly jump the gun and say things like ''never'' or ''no way in hell'' were nothing is impossible specialy not in the business world and even less in the tech industry.

[whocaresbg]

AMD: To Merge Or Not To Merge? :

http://www.tomshardware.com/2008/02/...not/index.html

IBM is the logical buyer for me .