Nvidia-Microsoft pact might be 11 Years old

By Archean
Jun 6, 2011
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  1. I just bumped into Hilbert's post at Gurus:

    According to it, nVidia-MS understanding is 11 year old, and it gives MS the exclusive right to equal any offers by thired-parties for 30% + nVidia's outstanding shares aka Microsoft may have first and last rights of refusal to purchase the stock.

    A bit weird but something which make sense, considering MS's range of products.
  2. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,264

    Seems as though the stock offer was negotiated in 2000 when MS were looking to ink an agreement with Nvidia for supply of GPU's for the original Xbox- probably to ensure continuing supply should Nvidia be a possible acquisition target.
    BTW: Nvidia's market cap in 2000 was $US2.18bn, so represented very minimal outlay should MS have needed to invoke the agreement.
  3. Archean

    Archean TechSpot Paladin Topic Starter Posts: 5,690   +96

    Fair enough, but I think MS will continue to need nVidia for whatever they are cooking to succeed the current Xbox; so this cooperation is very essential to them. Now, if the rumors about MS taking over Nokia are true, I think it could also make sense for them to (at least) increase their share in nVidia. Anyway there can be many interesting scenarios here, and it will take some time before things clear out IMO.
  4. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,264

    I think you're probably right with the MS + Nvidia love-in (link 1) and (link 2)

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