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Rumor: Microsoft could acquire Nvidia stock?

One of the biggest mergers in tech history could happen if things align in the right way, according to a new article. The web site Informationweek.com reports that processor maker Nvidia has made a filing with the US Securities and Exchange Commission stating that it has an agreement to have Microsoft match any offer made to purchase 30 percent or more of shares in Nvidia.

According to the story the filing with the SEC. made on May 27, states, "Under the agreement, if an individual or corporation makes an offer to purchase shares equal to or greater than 30% of the outstanding shares of our common stock, Microsoft may have first and last rights of refusal to purchase the stock." According to the story, the deal actually came about due to Nvidia's deal to provide the graphics chip inside Microsoft's original Xbox console over 10 years ago. Even though Microsoft then ditched Nvidia for ATI for the graphics chip for the Xbox 360 console the article states that the acquisition deal between the two companies "is apparently still in effect."

Since then Nvidia has continued to make newer and faster graphics chips for PCs. More recently it has been creating the Tegra line of processors designed for smartphones and tablets. If Microsoft were to own a part of Nvidia it might help them with getting its Windows 8 operating system inside more tablets that might be powered by future chips from Nvidia. The article also points to rumors that Apple might see Nvidia as an acquisition target.

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