Asus & Gigabyte join forces

Big B

Big B

HWF Godfather
The market is getting crazy. There were rumors going on earlier, but Gigabyte and Asus denied them. However, Gigabyte has put out a press-release stating that they're going to have a joint venture with Asus and...well, just read it for yourself.

In accordance with the relevant regulations according to Company Law, Securities Law and Business Merger & Acquisition Law, a resolution of the board of directors was passed on the 8th of August, 2006 for GIGABYTE Technology Co., LTD (Stock Code: 2376) to transfer the relevant assets and businesses of its own branded motherboards and VGA cards to a newly established subsidiary. After all the necessary legal procedures and obligations have been fulfilled, ASUSTek Computer Inc. (Stock Code: 2357) plans to invest in this newly established GIGABYTE subsidiary to help manage the joint venture and develop a strategic alliance with GIGABYTE. Both parties will work together to increase operation efficiency, enhance product quality, provide better customer service and create a higher value for shareholders.

This company is going to be a beast!
 
wow thats really crazy, this kidna seems like the trend for any big sized company these days is to merge, the cell phone companies, telephone companies, computer companies, hmm
 
does that mean we wont be seeing gigabyte and asus motherboards now, it will be like Giga-asus or somthing?
 
dudes, I am having qualms about all these mergers. Like Swansen said, there's a lot of huge mergers lately among all the tech companies. And that is typically not good. The more monopolized the market becomes, the easier it becomes for those top companies to make profit. And that, in turn, more often than not means that the consumer is getting charged higher (i.e. ripped off) than he otherwise would be.
 
heh, even one of the big companies are planning on buying ATi out right? AMD or Intel i think? there all merging, wonder no one has got hold of Nvidia yet.
 
lol GigaAss lol, but yes DaRuSsIaMaN has a very godd point. I to worry, but just hope that they make good with it and use all the combined knowledge to make things better and cheaper, but that most likely won't happen.
 
At this point, it's hard to say what we'll see. What I think will happen is that we'll still see Asus and Gigabyte motherboards and video cards, given the positive overall image of both companies. From what I can see, the companies are going to be working much more closely with each other. It doesn't *look* like this is going to be a traditional merger or straight take over.
 
The way it reads about Gigabyte establishing a new subsidiary company is that Asus and Gigabyte are just going to share technologies to try and help save R&D costs, increase distribution power & reduce material costs.

Becauseof the fact it's a joint venture & not a complete merger between the two companies I wouldn't be too worried, it looks like a cost saving measure more than anything.
 
Not necessarily. If they can lower their costs, business do tend to take advantage of that. They may reinvest part of that back into R&D and may lower costs. I don't know for sure, but keeping a quality product is pretty high on the list for both companies, costs coming second.
 
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