Will Intel will buy NVIDIA?

[Wreckage]

http://news.cnet.com/8301-13924_3-10411631-64.html

 

[BlahBlahYouToo]

scary if it happens.

 

[lifeblood]

Huang's ego will never allow it.

 

[cganesh75]

Huang's ego will never allow it.

+1

also FTC wont allow it either. merger between a company with most CPU market share and a company with most GPU market share will kill any competition..

 

[Idontcare]

Actual article title: 'Intel will buy Nvidia' mere theory, but intriguing

Why not use the full title of the article? Intentionally misleading thread topic?

 

[Painman]

I'm thinking of all the lame old commercials for Reese's peanut butter cups.

Somebody stop me.

 

[SirPauly]

That article is based on wild speculation with a context of conspiracy:

http://www.cringely.com/2009/12/intel-will-buy-nvidia/

 

[nemesismk2]

Yeah I think it would be a good move for Intel but I don't think it's going to happen. Intel make great processors and Nvidia are the second best video card producer after ATI.

 

[akugami]

I don't believe there are any real regulatory hurdles to Intel buying nVidia as the article mentions. I think that if Intel really wanted to buy out nVidia that they can point to AMD/ATI as sufficient competition on the CPU and GPU front.

Larrabee is not gone but it makes a lot of sense for Intel to buy nVidia for their GPU expertise. I still believe that with enough money Intel could develop a good enough GPU to be competitive within an attractive power envelope. Yes, Larrabee may be late but never underestimate the resources Intel can bring to bear on a problem. Tech demos of Larrabee show that it can be a decent GPGPU performer and Intel doesn't need the high end GPU market. Just the mid to low end and integrated markets.

Intel buying nVidia does bring a lot of positives for Intel but I don't really see any huge positives for nVidia. Mobo chipsets may bring revenue and profits to nVidia but their bread and butter has always been video cards and that isn't gone. With Larrabee late, nVidia really has an opportunity to secure the GPGPU market. About the only major plus is the fact that nVidia won't have to worry about losing the low end and integrated GPU business if Larrabee succeeds.

Tegra IMHO is likely to be a huge platform IMHO. Mobile devices are really the next big thing. Intel has Atom and that is x86 which is a plus for anyone wanting to stay in the Windows OS family but the number of devices based on ARM CPU's and not using Windows is growing. Platforms like the iPhone and even Zune show that it's not necessary to have Windows compatibility in order to succeed. In fact, it is my opinion that mobile devices and platforms like Tegra pose the biggest threat to Intel's dominance.

While this partnership makes a lot of sense on a lot of fronts, I don't think it will happen. Lots of egos involved in both the Intel and nVidia sides. There's also a huge chance nVidia may strike it big on the mobile front.

 

[happy medium]

Yeah I think it would be a good move for Intel but I don't think it's going to happen. Intel make great processors and Nvidia are the second best video card producer after ATI.

Troll much?

 

[zephyrprime]

+1

also FTC wont allow it either. merger between a company with most CPU market share and a company with most GPU market share will kill any competition..

I don't see that being the case. The FTC would not allow a merger between AMD and Intel but since Intel and nVidia are sorta in different markets, the FTC would definitely allow it. The only grounds the FTC would have not to allow it would be that Intel is actually the #1 graphics company in the world (in terms of units, maybe money with their dominance of the integrated market) so if nVidia were #2 or #3, it could be a monopoly issue.

 

[PingviN]

If Jensen didnt want to let the role of CEO pass to AMD, I doubt he will let Intel get it this time.

 

[Idontcare]

Nvidia's market cap is roughly $8B-$9B, typical M&A take a 2x multiple to existing market cap plus or minus some allowances for extenuating circumstances.

Has Intel ever done an M&A with a company over $2B? Let alone one that would cost them >$15B?

So long as Larrabee doesn't cost them >$15B it will be cheaper for Intel to continue to organically grow their discreet GPU processor roadmap from within. It might not be Larrabee, but they could toss Larrabee aside and start over from scratch and still have ~$10B in the budget before buying Nvidia would have been the cheaper option.

 

[Creig]

Actual article title: 'Intel will buy Nvidia' mere theory, but intriguing

Why not use the full title of the article? Intentionally misleading thread topic?

Ditto. Wreckage, please just post the entire heading so people know exactly what the thread is about rather than trying to sensationalize it like that.

 

[crisium]

Actual article title: 'Intel will buy Nvidia' mere theory, but intriguing

Why not use the full title of the article? Intentionally misleading thread topic?

This is is exactly what I thought. This made it seem like an agreement was reached, when it is barely speculation at all. There's no need for yellow journalism in personal thread titles.

 

[Wreckage]

If Jensen didnt want to let the role of CEO pass to AMD, I doubt he will let Intel get it this time.

They could always offer him a VP, with a shot at the title.

I doubt this will happen, but....it would actually make a lot of sense.

They would pick up tegra, tesla and fermi which would fill a lot of holes in their product line.

They would make Apple happy.
http://www.techreport.com/discussions.x/18089

This would instantly fix the whole Larabee disaster.

A lot of NVIDIA board partners also make Intel motherboards.

Granted it will cost them a lot. When AMD bought ATI, ATi was nearly out of business and AMD still lost their ass on that deal. NVIDIA on the other hand is in first place as far as video cards and has money in the bank. Not that Intel doesn't have the cash, they just may not be willing to spend it.

 

[Seero]

Nvidia's market cap is roughly $8B-$9B, typical M&A take a 2x multiple to existing market cap plus or minus some allowances for extenuating circumstances.

Has Intel ever done an M&A with a company over $2B? Let alone one that would cost them >$15B?

So long as Larrabee doesn't cost them >$15B it will be cheaper for Intel to continue to organically grow their discreet GPU processor roadmap from within. It might not be Larrabee, but they could toss Larrabee aside and start over from scratch and still have ~$10B in the budget before buying Nvidia would have been the cheaper option.

Good analysis

 

[yacoub]

It would make sense, given that Intel can't seem to put out a consumer/gaming/enthusiast class GPU. Can't beat 'em, buy 'em. Especially when you'd gain people with the GPU talent you need to make Larabee a success.

 

[SirPauly]

Just an observation from someone with some prominence:

http://jonpeddie.com/blogs/comments/intel-will-never-buy-nvidia/

 

[CuriousMike]

Just an observation from someone with some prominence:

http://jonpeddie.com/blogs/comments/intel-will-never-buy-nvidia/

Good article. Thanks for posting that.

 

[shangshang]

I think the notion of Intel buying NV is more of an NV-fanboy/stockholder wet dream.

 

[Zap]

"Let's give them something to talk about"

(with apologies to Bonnie Raitt)

 

[Munky]

Troll much?

Haha, he's got a point though, at the moment Nvidia isn't looking too good. Or would you insist that Nvidia is better instead?

 

[postmortemIA]

I doubt intel can't do anything until all antitrust proceedings are done.

 

[zagood]

Just an observation from someone with some prominence:

http://www.jonpeddie.com/blogs/comments/intel-will-never-buy-nvidia/

Good post. Fixed the link for you though.