Apparently NVIDIA and VIA are in talks to merge, with the larger NVIDIA obviously doing the buying and the aging, struggling VIA looking to sell.  We recently talked with VIA about their upcoming processor line and can’t help but think that NVIDIA still desperately wants to get into the general purpose processor world to have a snowball’s chance of competing with Intel in the long run.

The story goes now that VIA was asking too much and/or NVIDIA was offering too little for the deal to take place.  These are all still rumors at this point but these things have a tendency to come true…

Nvidia reportedly was in talks with VIA Technologies about a possible acquisition, but no deal was made due to the high price named by VIA, according to sources at motherboard makers.

Nvidia and VIA discussed three possible scenarios, including a strategic alliance, acquisition of only VIA’s processor division, or the acquisition of the entire company, according to the sources. Though no deal was agreed upon, since VIA continues to see losses, the company is expected to open up negotiations again soon with a lower price, noted the sources.

VIA has denied the speculation about an acquisition by Nvidia and pointed out that the company currently does not have a plan to reduce its capital as recent reportsin Chinese-language media have suggested. The company said that its main business is still focused on x86 CPUs and chipsets and therefore will not give up these segments.