Counterpoint: Intel Will Never Buy Nvidia

Jon Peddie takes his considerable track record and inside knowledge of the computer industry and uses it to build a convincing argument against the earlier rumor (more like Thought Experiment) that Intel could buy NVidia.

It’s unlikely, regardless of how big Intel’s checkbook is, that the two companies could ever agree on the price.

The Nvidia BOD and shareholders of Nvidia would never approve a friendly acquisition by Intel, and Nvidia has a multi-voting technique that would delay any hostile attempt for over a year.

If Intel could buy Nvidia, one of the first things it would do would be to dump the ARM-based Tegra product just as they dumped the ARM-based XScale product, which they did because they think the x86 has a more promising and scalable future. Given the huge goodwill they’d have to pay to get Nvidia, selling off an asset at a breakeven point at best would hardly endear the company to Wall Street or its shareholders.

via Intel Will Never Buy Nvidia – Comments – Blogs.

This story written by Randall Hand

Randall Hand is a visualization scientist working for a federal research lab, aiding researchers to discover the insights buried within their terabyte datasets generated on some of the most powerful supercomputers in the world. He also runs VizWorld.com .