Intel buyout of NVIDIA not very likely

Posted on Saturday, Jul 29 2006 @ 05:13 CEST by Thomas De Maesschalck
The Inq speculates that it isn't very likely that Intel might attempt to buy NVIDIA now that AMD has acquired ATI.
Well, while it is not impossible it is very highly unlikely and not just because of the antitrust implications. Nvidia would simply cost way too much. ATI was a bargain, and very cheap for what AMD was getting. AMD paid peanuts to get this once great company and if you want to reach for Nvidia you would have to dig much more deeply into your pocket.

You would have to spend at least eight billion dollars to buy the currently-available Nvidia shares. Of course, you have to add some incentive on top of the price so we are talking about close to 10 billion dollars for this green-loving graphics company.

Intel could afford it, of course, but it has to solve some in-house problems first. Ten billion is a fair wedge, but not for a company as big as Intel. However, the US SEC would never approve such a merger anyhow.
Read more over here.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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Re: Intel buyout of NVIDIA not very likely
by Anonymous on Saturday, Jul 29 2006 @ 19:20 CEST
What they say is probably true. However what you have to say if you are Intel is "the enemy of my enemy is my friend"...

So Intel may not BUY Nvidia. But this deal just made Intel and Nvidia very friendly...