Jonjonz wrote on Feb 12, 2020, 06:26:
NVIDIA (120 billon valuation) can afford to just flat out buy Valve (Forbes estimates value at 3-4 billion.) Then they would have the best catalog in the cloud.
You can only buy something that is for sale. And Valve is not publically traded, so any acquisition would have to be actively negotiated. If Gabe Newell doesn't feel like he's getting enough out of whatever deal is proposed he can almost certainly deny any sale as he (from what I can tell) owns the majority of Valve. Additonally whatever values Forbes estimate are at best guidelines to be used in potential negotiations, Bloomberg puts the estimate for Valve at $10 billion on this date.
There's also the possibility that Gabe Newell just doesn't see the need to sell to NVIDIA, regardless of how much he is offered. Even if he only had a personal fortune of $500mil that is still enough for a family to live extremely comfortably for a century. And $500 million is well below what he most likely actually has, as his personal net worth is estimated to be in the range of $3.5-6.5 billion depending on source.
If Gabe Newell is the kind of person who doesn't actively seek more wealth (those do exist), he has little reason to accept any offer of a buyout. And Valve is (at least partially) his creation, so he may have a lot of attachment to the company and may not want to see anyone else in control.