Asus and Gigabyte Joint Venture Ends
A few months ago, Asus and Gigabyte announced that they'd be entering into a joint venture to build Gigabyte-branded motherboards and graphics cards. An initial investment of $244M dollars was to be made, with Gigabyte owning 51% of the company. It turns out the plan wasn't such a great idea and deal is off.
"A spokesman of GIGABYTE said a resolution of the board of directors was passed on the Mar 22 to call off the plan of forming joint venture. It's explained the confusion of clients and suppliers, together with the changes of both internal and external factors has lead to this hard decision. In the present environment, the necessity of forming joint venture is no longer as strong as expected, and thus suspension is the best solution for both shareholders, said GIGABYTE's spokesman."
