Originally Posted by epic1337
wouldn't it be cheaper to draft a contract than acquire a company when they're already short on cash?
with a contract at least they could observe whether they'll benefit from their work, rather than risk it by acquiring a company that they think would help them.
In this case, it is probably overall cheaper to acquire HiAlgo than to contract them. They are a very small, mostly unknown company. AMD might be short on cash, but this acquisition probably cost less than a new round of office chairs for the conference room.
By acquiring them, they get full control over all their work, and probably more importantly, all of their IP. They could completely stop paying and/or kick out all the original HiAlgo guys if they don't deliver as expected, and still hold on to all the technology... plus it gives them the option to give Nvidia some of their own medicine and make these features proprietary. That's all worth much more than the few bucks spent on buying the company instead of just one of their products.Edited by Zero4549 - 6/30/16 at 5:45pm