[comp.sys.sgi] sgi-compaq deal

Dan Karron@UCBVAX.BERKELEY.EDU (03/07/91)

From the New York Times, Page D1, col 6 (Business Day)
March 7, 1991
------------------------------------------------------------------------------
New Venture for Compaq Called Near

By Lawrence M. Fisher, Special to the New York Times.

SAN FRANSISCO, March 6 - After rebuffing an acquitision proposal from the
Compaq Computer Corporation, Silicon Graphics, Inc. has agreed to sell
Compaq a significant minority stake and to collaborate on a new computer work
stations, people close to both companies said today.

The deal is expected to be completed by the end of the month, before the 
formal announcement in early April of the creation of a consortium that 
hopes to establish new hardware and software standards for desktop computing,
or a kind of second generation personal computer.

The consortium, which includes Compaq and Silicon Graphics, also includes the 
Digital Equipment corporation, the Microsoft Corporation and MIPS computer
Systems, Inc. The group is meant to try to unseat the dominance of the IBM 
Corp and that of Sun Microsystems in work stations.

New Processor

A Compaq-Silicon Graphics link would allow the companies to produce the
first machine meetings the consortiu's specifications, which include the use 
of MIPS's new R4000 microprocessor and operatins system software to be 
developed by Microsoft and the Santa Cruz Operation, A company partly owned by
Microsoft. Because the R4000 has yet to enter production, the new Compaq-Sgi
workstation would probably not reach the market for a year of more.

But even without the consortium, the combination of Compaq's manufacturing
and marketing ability and Silicon Graphics' technology would present a 
formidable challange to Sun. Compaq, based in Mountain View, Calif., is the 
leading maker of IBM pc clones. Siligon Graphics, a maker of high-performance
work stations, was one of the earliest companies to adopt RISC ... It is also 
the leader in workstations displaying images in three dimensions.

The proposed link ''is potentially good for both parties" said Richard Schaffer, editor of the Technologic Computer Letter. "It gives sgi an affiliation 
with a company that has the most successful new-product record in the 
industry", he said. "Compaq has never had a new-product failure: IBM can's
say that and neither can Sun"

...

The final terms of the link have not been completed, but people close to each
company said that Compaq would buy less than 20 percent of Silicon Graphics's
shares for a combination of cash and compaq stock. The two companies would 
then enter a joint development agreement to produce a new work stations, 
which would be sold by Compaq through its dealer channels, as well as by 
Silicon Graphics' direct sales force.

The people said Compaq initally proposed a merger with Silicon Graphics, in 
January, prompting the smaller company to adopt to adopt a so-called poison
pill anti-takeover measure in early February. While Silicon Graphics 
prefereed to remain independent, it has in the past sold small stakes to 
Control Data Corporations and to HNK, the Japanese broadcasting company.
Both companies declined to comment on any possible deal.

+-----------------------------------------------------------------------------+
| karron@nyu.edu (E-mail alias that will always find me)                      |
| Fax: 212 263 7190           *           Dan Karron, Research Associate      |
| . . . . . . . . . . . . . . *           New York University Medical Center  |
| 560 First Avenue           \*\    Pager <1> (212) 397 9330                  |
| New York, New York 10016    \**\        <2> 10896   <3> <your-number-here>  |
| (212) 263 5210               \***\_________________________________________ |
| Main machine: karron.med.nyu.edu (128.122.135.3) IRIS 85GT                  |
+-----------------------------------------------------------------------------+

rpaul@crow.UUCP (Rodian Paul) (03/09/91)

> >>prefereed to remain independent, it has in the past sold small stakes to 
> >>Control Data Corporations and to HNK, the Japanese broadcasting company.
> >
> >NHK.  Nippon Hoso Kaisha, if I'm not mistaken (it's from memory; I'm
> >probably mistaken).  I'm sure the original source had it 'NHK', but 
> >I thought I'd check anyway.
> >

Actually guys, it's NKK (Nippon Steel) it made me wonder if the transcriber of
the article was adding his own embellishments or the original author of the
article screwed up. If the latter is true how many other "facts" reported
are worth believing?

-------------------------------------------------------------------------------
crow!rpaul@ccut.cc.u-tokyo.ac.jp	phone: +81 (3) 5706-8357
ccut.cc.u-tokyo.ac.jp!crow!rpaul	  FAX: +81 (3) 5706-8437

Dan Karron@UCBVAX.BERKELEY.EDU (03/09/91)

>
>> >>prefereed to remain independent, it has in the past sold small stakes to 
>> >>Control Data Corporations and to HNK, the Japanese broadcasting company.
>> >
>> >NHK.  Nippon Hoso Kaisha, if I'm not mistaken (it's from memory; I'm
>> >probably mistaken).  I'm sure the original source had it 'NHK', but 
>> >I thought I'd check anyway.
>> >
>
>Actually guys, it's NKK (Nippon Steel) it made me wonder if the transcriber of
>the article was adding his own embellishments or the original author of the
>article screwed up. If the latter is true how many other "facts" reported
>are worth believing?
>

No, I tried not to make my own embellishments. I ran around today to try
to find a copy of the New York Times to verify the copy I attempted to
transcribe. It was thrown out and I don't have a copy any more. However,
aside from my usual misspellings, I thought that it was the big Japanese
broadcasting company that had a stake in SGI.

So it is NKK (Nippon Steel) that has a stake in SGI ? If that is the case 
then the original author of the Times piece may be due a corrective letter.

Who owns what of SGI ? If there are other factual errors in that piece then
I would like to know. That piece was special to the New York Times, and I am
certain that they (and I) would like to know the real facts !

Thanks for your comments. 

>
>-------------------------------------------------------------------------------
>crow!rpaul@ccut.cc.u-tokyo.ac.jp	phone: +81 (3) 5706-8357
>ccut.cc.u-tokyo.ac.jp!crow!rpaul	  FAX: +81 (3) 5706-8437
>
+-----------------------------------------------------------------------------+
| karron@nyu.edu (E-mail alias that will always find me)                      |
| Fax: 212 263 7190           *           Dan Karron, Research Associate      |
| . . . . . . . . . . . . . . *           New York University Medical Center  |
| 560 First Avenue           \*\    Pager <1> (212) 397 9330                  |
| New York, New York 10016    \**\        <2> 10896   <3> <your-number-here>  |
| (212) 263 5210               \***\_________________________________________ |
| Main machine: karron.med.nyu.edu (128.122.135.3) IRIS 85GT                  |
+-----------------------------------------------------------------------------+

jim@baroque.Stanford.EDU (James Helman) (03/10/91)

From Dan's posting: 

    The people said Compaq initally proposed a merger with Silicon
    Graphics, in January, prompting the smaller company to adopt to
    adopt a so-called poison pill anti-takeover measure in early
    February. While Silicon Graphics prefereed to remain independent,
    it has in the past sold small stakes to Control Data Corporations
    and to HNK, the Japanese broadcasting company.  Both companies
    declined to comment on any possible deal.

I have the NYT article in front of me.  Dan's account is accurate except
for typos.  "HNK" should read "NHK."

Does anyone know why CDC, NHK or Prime invested in SGI?  I don't recall
any joint product efforts.

-jim

Jim Helman
Department of Applied Physics			Durand 012
Stanford University				FAX: (415) 725-3377
(jim@KAOS.stanford.edu) 			Work: (415) 723-9127

robert@texas.asd.sgi.com (Robert Skinner) (03/12/91)

In article <JIM.91Mar9121809@baroque.Stanford.EDU>, jim@baroque.Stanford.EDU (James Helman) writes:
|> From Dan's posting: 
|> 
|>     The people said Compaq initally proposed a merger with Silicon
|>     Graphics, in January, prompting the smaller company to adopt to
|>     adopt a so-called poison pill anti-takeover measure in early
|>     February. While Silicon Graphics prefereed to remain independent,
|>     it has in the past sold small stakes to Control Data Corporations
|>     and to HNK, the Japanese broadcasting company.  Both companies
|>     declined to comment on any possible deal.
|> 
|> I have the NYT article in front of me.  Dan's account is accurate except
|> for typos.  "HNK" should read "NHK."
|> 
|> Does anyone know why CDC, NHK or Prime invested in SGI?  I don't recall
|> any joint product efforts.
|> 
|> -jim
|> 
|> Jim Helman
|> Department of Applied Physics			Durand 012
|> Stanford University				FAX: (415) 725-3377
|> (jim@KAOS.stanford.edu) 			Work: (415) 723-9127

As far as I know, Dan's original article was accurate, except for the
HNK -> NHK typo and stating that Silicon Graphics was based in Houston
(Compaq is).

SGI OEMs IRIS 4D systems to CDC and Prime, to be sold under their
name.

I think we bought back CDC's equity last year.  NHK still owns a piece,
and I don't know about Prime.

-- 
Robert Skinner
robert@sgi.com

	When the movie is over and everyone leaves the theatre, 
	the accumulated sound leaves with them.  
	It spreads out across the parking lot to become
	forever part of the landscape.  
	The film is a gift to the surrounding community. 

		-- David Byrne, about the film "Stop Making Sense"

rogerk@mips.com (Roger B.A. Klorese) (03/13/91)

In article <JIM.91Mar9121809@baroque.Stanford.EDU> jim@baroque.Stanford.EDU (James Helman) writes:
>Does anyone know why CDC, NHK or Prime invested in SGI?  I don't recall
>any joint product efforts.

CDC's Cyber 900 series is the 4D series.

The Prime story is a touch more interesting.  Back in the mid-80's, Prime
set out to build its own workstation, based on CPU boards from Mips (at
the time, by the way, I worked for neither Prime nor Mips, so this is
from memory), with graphics by Raster Technology.  (The Raster Tech deal
was announced.)  At high levels within Prime, it was determined that
the time to market was too great, especially considering their lack of
experience with desktop products.  (This, remember, was the company which
told Bill Poduska not to proceed with "Primos on the desktop," so he left
and founded Apollo...)  They sought out, and invested in, SGI to foster
the building of a workstation combining Mips RISC with SGI graphics... the
first 4D systems.  Prime sold these until the aftermath of their buyout
of Computervision led them to consolidate their workstation line for CAD
products on Sun systems.
-- 
ROGER B.A. KLORESE                                  MIPS Computer Systems, Inc.
MS 6-05    930 DeGuigne Dr.   Sunnyvale, CA  94088              +1 408 524-7421
rogerk@mips.COM         {ames,decwrl,pyramid}!mips!rogerk         "I'm the NLA"
"WAR: been there, done that... hated it."  -- QueerPeace/DAGGER chant