Thursday, February 14th 2008

Analyst Believes NVIDIA May Acquire AMD Despite Possible Loss of x86 Licensing

Feb 14th, 2008 17:51 Discuss (82 Comments)

American Technology Research analyst Doug Friedman believes NVIDIA could acquire Advanced Micro Devices (AMD) despite AMD's x86 license from Intel being non-transferable. Friedman believes that AMD and Intel's long term roadmaps are a threat to NVIDIA and cites mounting pressure from AMD's stock holders as a reason for its vulnerability to a buyout from NVIDIA. AMD's recent troubles with its quad core processors and ATI's recent weakness in the high end graphics market have only exacerbated this pressure. Friedman sees AMD and Intel's plans for integration of CPUs and GPUs as a threat to NVIDIA and believes NVIDIA anticipates this future competition as well. Combining this information with rumors that Intel is attempting to develop discrete graphics adapters of their own leaves NVIDIA in a possibly weakened position. However, AMD's extensive cross-licensing of x86 and other technologies with Intel would not be NVIDIA's only obstacle. They would also face possible anti-trust investigation from United States and European Union law enforcement agencies.

Source: X-bit Labs

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82 Comments on Analyst Believes NVIDIA May Acquire AMD Despite Possible Loss of x86 Licensing

Namslas90

Does this mean then end of ATI?

hat

Enthusiast

I don't think it would be the end of ATI. That would mean monopoly, which is illegal.

EastCoasthandle

why is this posted a 2nd time as news? I posted my response to this before and it (as well as other posts) are deleted

jocksteeluk

Namslas90Does this mean then end of ATI?

It was the end of ATi when AMD purchased them and sacked almost all the former ATi staff, it is that staff that makes a company, sack the staff and you just end up with a product.

imperialreign

if nVidia did pull this off - it would seem to me to be a panic reaction to what appears to be staedily growing (once again) competition.

ATI is owned by AMD, but it's still operated independantly - which means that nVidia might cut ATI free if they decide to acquire AMD . . .

which would potentially spell doom for ATI.

TBH, I'm completely against this potential merger - nVidia has become near as powerful as Intel, and if it were left to nVidia and Intel with no other competition, you can expect hardware prices to skyrocket.

Polaris573

Senior Moderator

EastCoasthandlewhy is this posted a 2nd time as news? I posted my response to this before and it (as well as other posts) are deleted

It's my fault. I'm sorry.

Exceededgoku

This won't happen, it's only speculation and just think of the repurcusions. Nvidia needs competition to stay alive....

Random Murderer

The Anti-Midas

Polaris573... American Micro Devices (AMD)...

ummm, it's Advanced Micro Devices...

EastCoasthandle

Polaris573It's my fault. I'm sorry.

I see...
In any case as I said before, it won't happen (as others eluded to as well). Not only do you have anti trust concerns, the x86 is not transferable. Not only that, this news comes in light of other analyst(s) report that nvidia lost 13% market share which is a bit suspicious.

..."In the last three years, they were pretty much untouchable," Fischer said. "They were taking a lot of share, but now people are realizing that ATI is a real competitor again and could regain market share."

...In the last 12 months, based on Wednesday's closing price, Nvidia shares rose 19 percent, compared with a 21 percent decline in the Philadelphia Semiconductor Index .

The stock had been insulated, analysts said, by its ability to gain market share and increase its competitive lead over ATI. However, with a resurgent ATI and a looming Intel, the buffer that Nvidia enjoyed has diminished.

"Now they're much more sensitive to the demand trends we see in the overall PC market," Fischer said.

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.

#10

Random Murderer

The Anti-Midas

EastCoasthandleI see...
In any case as I said before, it won't happen (as others eluded to as well). Not only do you have anti trust concerns, the x86 is not transferable. Not only that, this news comes in light of other analyst(s) report that nvidia lost 13% market share which is a bit suspicious.

analysts don't really have a friggin clue what the hell they're talking about. i know, i live with one:p

#11

imperialreign

Random Murdereranalysts don't really have a friggin clue what the hell they're talking about. i know, i live with one:p

:laugh:

just like analysts have been saying for the last two years that GM is going to have to declare bankruptcy, right?

#12

EastCoasthandle

Random Murdereranalysts don't really have a friggin clue what the hell they're talking about. i know, i live with one:p

I hear yea but it's news like this that attract responses which lead to a locked thread. Specially when people start posting how possible this is. :laugh:

#13

Random Murderer

The Anti-Midas

EastCoasthandleBut it's news like this that attract responses which lead to a locked thread. Specially when people start posting how possible this is. :laugh:

oh, it's possible. it's just not a good business move for anybody, so the odds of this actually happening are so slim it's ridiculous.

#14

EastCoasthandle

Random Murdereroh, it's possible. it's just not a good business move for anybody, so the odds of this actually happening are so slim it's ridiculous.

then that contradicts your previous response that "analysts don't really have a friggin clue"

#15

Sasqui

I think aquisition of AMD is inevitable (by someone!), but regulators will see huge anti-trust issues with NVidia like the article says, but not just chipset issue, but also the graphics card industry - that will become a complete monpoly. That is... unless Intel steps in with some move or new product(s).

#16

imperialreign

TBH, considering the amount of investigation that Intel has been coming under - nVidia stands to be the next in line, too, as people become more aware of what's going on in the industry - anything that looks suspicious is more readily noticed.

nVidia wouldn't be able to purchase AMD at the moment, as it would attract a lot of the wrong kind of attention, and they could easily find themselves the target of the next anti-trust investigation

#17

Random Murderer

The Anti-Midas

EastCoasthandlethen that contradicts your previous response that "analysts don't really have a friggin clue"

not really. the analysts are saying that this will most likely happen, i'm saying it's possible but not gonna happen. ever.

#18

ShadowFold

If Nvidia bought AMD, then there wouldnt be any more ATi drivers huh :(

#19

das müffin mann

this would be terrible for consumers if this were allowed to happen, regardless if you like ati, or not

#20

Random Murderer

The Anti-Midas

das müffin mannthis would be terrible for consumers if this were allowed to happen, regardless if you like ati, or not

guys, this is like back when there was speculation that intel was gonna buy amd. it's NOT gonna happen.

#21

ShadowFold

Random Murdererguys, this is like back when there was speculation that intel was gonna buy amd. it's NOT gonna happen.

how can you be so sure? Someones bound to buy AMD, there in such a mess right now.

#22

Random Murderer

The Anti-Midas

ShadowFoldhow can you be so sure? Someones bound to buy AMD, there in such a mess right now.

yes, someone is buying amd as we speak, but it's a company you've never heard of, and i won't be the one to tell you who it is. wait for a press release.

#23

ShadowFold

Random Murdereryes, someone is buying amd as we speak, but it's a company you've never heard of, and i won't be the one to tell you who it is. wait for a press release.

SEGA?

#24

magibeg

S3 should come out of nowhere and buy up AMD, now that would be a surprise.

#25

Random Murderer

The Anti-Midas

ShadowFoldSEGA?

LOL! you've heard of them, no?

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Analyst Believes NVIDIA May Acquire AMD Despite Possible Loss of x86 Licensing

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