Nvidia or IBM to acquire AMD ?

[Modelworks]

Was just reading this.
It makes sense, but I don't know if it will actually happen.
If it did happen, it would be very interesting what intels response would be.




http://www.xbitlabs.com/news/c..._Lose_x86_License.html

Doug Friedman, an analyst with American Technology Research, said that graphics chip maker Nvidia Corp. could well acquire x86 microprocessor maker Advanced Micro Devices in order to ?re-architect it?. The acquisition is considered to be useful due to the fact that roadmaps of AMD and Intel Corp. threat Nvidia. The only problem for the graphics giant is that AMD?s x86 license is a non-transferable one.


?We believe AMD [could] face mounting pressure from shareholders, to restructure the company with a focus on a change in leadership,? said the analyst.

Indeed, shareholders of AMD are hardly pleased with the company?s performance in the recent quarters as well as issues with the launch of quad-core microprocessors and the release of DirectX 10 graphics processing units. Nevertheless, late last year AMD managed to secure $622 million from Mubadala Development Company, which means that there are those who believe in AMD.

But despite of the problems that AMD has had, its roadmap of integration graphics cores into central processing units (CPUs) threats Nvidia: not only AMD increases its market share on the market of graphics adapters, but it transforms graphics solutions into commodity, which may potentially affect Nvidia?s revenues going forward.

?The Intel/AMD roadmap 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,? said Mr. Friedman.

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.

Perhaps, Jen-Hsun Huang, the chief executive of Nvidia, could re-architect Advanced Micro Devices in order to make it profitable. However, due to the fact that wide cross-licensing agreement between AMD and Intel, which is also believed to cover x86 instruction set, does not allow AMD to transfer any of Intel?s technologies to any third-party. As a result, if AMD is acquired by Nvidia, the new company will not have rights to produce x86 central processing units (CPUs) or utilize any technologies from Intel.

It is uncertain whether Nvidia, or any other company that has no wide cross-licensing agreement with Intel that covers x86 instruction set, is interested in getting AMD and not interested in making CPUs. But what is almost certain is that various antitrust organizations would be against the two suppliers of discrete GPUs becoming one.

EDIT:
Tomshardware take on amd/nvidia merger.
http://www.tomshardware.com/20...erge_or_not/page5.html


Added link to Tomshardware article about IBM , purchasing AMD.
http://www.tomshardware.com/20...erge_or_not/page6.html

 

[n7]

It was bad enough that AMD bought ATi.

This can only make things worse.

 

[Magusigne]

Originally posted by: n7
It was bad enough that AMD bought ATi.

This can only make things worse.

Yes.

AMD is a sinking ship and effectively doomed ATI with it I think.

 

[heyheybooboo]

Pretty much a repost from here ---->
http://forums.anandtech.com/me...=2154482&enterthread=y

I makes no sense and it ain't gonna happen -

 

[Mondoman]

Yep, if for no other reason than graphics antitrust issues.

 

[Modelworks]

I didn't see the other post.
Anyway, there is another article posted at toms hardware about amd mergers.
I think IBM buying the company does make more sense.
AMD without its x86 assets isn't much of a bargain.


http://www.tomshardware.com/20...erge_or_not/page6.html

IBM Could Be An Interesting Partner
IBM is a logical choice to buy AMD. For starters, AMD cannot be bought by just anybody, since there are limiting factors with the license for the x86 architecture. If AMD would be acquired by a foreign company (such as Samsung), that license would be lost, and that would diminish the value of AMD as a company. Thus, Nvidia and IBM, are the only two real players are in the game.

When it comes to IBM, the matter of market cap is very simple - AMD is currently valued at $3.88 billion and Nvidia goes for $13.44 billion. IBM is valued just below the $150 billion mark. Thus, AMD is pocket money for IBM, and the potential gains with AMD under IBM's wings are numerous.

For starters, IBM has a ton of manufacturing partnerships and is a member of a manufacturing alliance that involves AMD, IBM and Chartered from one side, and Toshiba and Sony from other. Let's not forget the fact that with AMD/ATI (or just Daamit) on-board, IBM would rule the world of video game consoles - all three consoles feature IBM processors, and the two leading consoles have ATI GPUs inside. The next generation of consoles could look much different, if IBM would have such design teams to develop complete solutions for Microsoft, Sony and Nintendo. And the market of 200-300 million consoles is very attractive.

There is also a small fact that AMD relocated one engineering team from Austin, TX to East Fishkill, NY - to work on a new manufacturing processes on the spot. With a lot of AMD engineers working closely side-by-side with IBM on next-gen designs, opening all secrets would create an incredibly flexible semiconductor giant that would be able to seriously cut down Intel's market share.

This would also propel IBM into worlds that are currently closed for the company, such as the consumer electronics segment, where ATI Imageon chips go head-to-head against STMicro, Thomson, Philips, Silicon Optix and others. The handheld market is also an interesting segment where ATI and Nvidia ship hundreds of millions of chips per annum, and we won't go into lucrative HPC deals where IBM usually competes either with its Power, Cell or Intel chips. Going all-IBM in the x86 arena would also open a new world for IBM's services, and this is what the company wants to influence. With ATI on board, IBM would enter the world of visual computing, which is set to dominate the world in decades to come (holographs, HUDs, monitors everywhere we go).

GPGPU also comes to mind, and this is the reason why both IBM and Nvidia would want AMD very, very badly. AMD has been quite vocal about integrating GPGPU-friendly improvements, and GPUs would gain CPU-friendly features.What speaks against an acquisition of AMD by IBM is IBM's current direction into services.

 

[lopri]

Originally posted by: Mondoman
Yep, if for no other reason than graphics antitrust issues.

Not if Intel enters graphics market.

 

[aigomorla]

Originally posted by: Mondoman
Yep, if for no other reason than graphics antitrust issues.

+1

exactly the same reason why microsoft never bought corel if you remember that company.


It would be cheaper for NVIDIA to buy ATI stocks and hold onto them so they dont go under then pay anti trust law suits like microsoft does every year.

 

[Falloutboy]

I really don't want to see nvidia take over AMD, IBM I would have no qualms about and look forward to it. Nvidia would seem to be in the same situation of not having enough cash to put real R&D behind CPU and GPU technologies at the same time

 

[BitByBit]

Personally, I regard the prospect of AMD being bought as more of a necessary evil than a good thing, as come Nehalem, they will find it very difficult to make money. At this point I wouldn't be surprised if they were considering selling off their CPU business entirely and focusing on graphics.

 

[nyker96]

probably IBM if anyone gonna do this. They got the x86 license. merging into Nvidia means blow to AMD's core CPU business since Nvidia probably just want to keep doing gcards mostly and x86 license fee makes it tough to compete in CPU business. They will only uses the fusion core to fend off Intel, another problem is the gcard market will be monopolized by Nvidia along.

 

[Nemesis 1]

Man these anaylyst. Will say anything to prop up AMDs share price.

You guys should read every article this clown has put out about AMD over the last 1/12 years. Doug Friedman I know who he works for American Technology Research.Iwonder who he is working with . To munipulate stock prices.

 

[Idontcare]

It's true that no one works for free or for charity in this industry.

Beware when offered "free" advice, you get what you pay for.

Neither Nvidia nor IBM makes any sense to acquire AMD.

And any financial analysis that begins by equating market cap to assets available to the company is just telling you everything you need to know to conclude you've wasted part of your life reading the mental diarrhea of an ignorant analyst. IBM's market cap could be 2trillion and wouldn't change how much money IBM as at its disposal to fund M&A. Market cap reflects the wealth in the hands of the shareholders, not the wealth in the hands of the company.

 

[sandorski]

Nvidia won't, IBM might. VIA could as well.

 

[Idontcare]

It would be a step up for Via. But completely out of the picture for IBM.

IBM has spent the better part of a decade divesting themselves of all their PC market business units and you don't reverse a decision like that in a company like IBM without another decade passing first.

 

[Modelworks]

Originally posted by: Idontcare
It would be a step up for Via. But completely out of the picture for IBM.

IBM has spent the better part of a decade divesting themselves of all their PC market business units and you don't reverse a decision like that in a company like IBM without another decade passing first.

I don't know.
IBM does have a lot invested in console development with its processors and being able to combine that with ATI might make sense.
I can't see IBM going into pc cpu sales either. Its something they haven't been interested in , in years, I think since the ps/2

They could look at maybe using AMD x86 licenses for its server marker though, but again they have dedicated IBM processors for those.

I think in the future either AMD will merge or someone will come out and give them the capital they need. Someone with a ton of cash. Warren Buffet ?
He could call it WMD

 

[toadeater]

Could ATI be bought from AMD?

 

[bunnyfubbles]

IBM is really too hard to put a finger on when trying to determine exactly WTF they might want to do - that being said they generally have been getting away from actually producing lines of their own consumer products and more into breaking ground on newer technology.

An nVidia merger would make the most sense, although the thought of nVidia outright buying up AMD seems laughable no matter how bad AMD is doing, nVidia really is still the little guy in what is a 3 way fight where each fighter can't really afford to knock out anyone at this point in time...

Intel has always been the juggernaut - so much so that instead of an "easy" way out in buying up ATI first, they decide to give everyone the finger and do things their own way on their own terms. If Intel can succeed on their own and AMD can pull through the tough times, nVidia could very well be left behind if they don't vigilantly maintain market leading performance in discrete GPU performance (or soon to be parallel processing performance ) because Intel will have their own solution as will AMD and both will have trump card system-on-a-chip solutions that nVidia currently cannot compete with as they are now...

 

[SickBeast]

Is there really no way at all for nVidia to purchase an x86 licence?

 

[lopri]

Originally posted by: bunnyfubbles
because Intel will have their own solution as will AMD and both will have trump card system-on-a-chip solutions that nVidia currently cannot compete with as they are now...

Not if NV somehow successfully kisses MS' arse. Didn't you guys see APX 2500 Application Processor launch? If MS writes OS suited for NV, without touching the X86 line, then NV don't need X86 license. They're starting with small things of course.

 

[Modelworks]

Originally posted by: SickBeast
Is there really no way at all for nVidia to purchase an x86 licence?

Nope.
No way at all.

 

[bryanW1995]

Originally posted by: Modelworks

Originally posted by: Idontcare
It would be a step up for Via. But completely out of the picture for IBM.

IBM has spent the better part of a decade divesting themselves of all their PC market business units and you don't reverse a decision like that in a company like IBM without another decade passing first.

I don't know.
IBM does have a lot invested in console development with its processors and being able to combine that with ATI might make sense.
I can't see IBM going into pc cpu sales either. Its something they haven't been interested in , in years, I think since the ps/2

They could look at maybe using AMD x86 licenses for its server marker though, but again they have dedicated IBM processors for those.

I think in the future either AMD will merge or someone will come out and give them the capital they need. Someone with a ton of cash. Warren Buffet ?
He could call it WMD

LOL!!

 

[Schadenfroh]

Could you imagine a fully funded AMD/ATI under the control of IBM with IBM supervising new fab plant constructions to make ATI graphics chips :Q


I doubt it happens though, IBM would probably want AMD / ATIs patent portfolio if they go under, but I doubt they would want to absorb the entire company.

 

[Idontcare]

Originally posted by: Schadenfroh
Could you imagine a fully funded AMD/ATI under the control of IBM with IBM supervising new fab plant constructions to make ATI graphics chips :Q


I doubt it happens though, IBM would probably want AMD / ATIs patent portfolio if they go under, but I doubt they would want to absorb the entire company.

I don't know why, how, when, or where the perception was created that IBM is somehow superior to product development or fab management relative to AMD.

In the fab world, the industry I came from, AMD is considered the benchmark of fab efficiency for utilization and entitlement yields. Their advanced process management (APM) is the envy of pretty much every fab manager.

 

[Schadenfroh]

Originally posted by: Idontcare
erior to product development or fab management relative to AMD.

In the fab world, the industry I came from, AMD is considered the benchmark of fab efficiency for utilization and entitlement yields. Their advanced process management (APM) is the envy of pretty much every fab manager.

I should reword that to IBM funding instead of supervising.