Nvidia to buy underwater options - 11 Feb 2009

Nvidia Corp. said Wednesday it will take a $150 million charge to buy employees' underwater stock options.

The Santa Clara-based graphics chipmaker (NASDAQ:NVDA) said the
offer applies to all employee-held outstanding stock options with an
exercise price of $17.50 per share or more. Some executives and board
members are not eligible.

The company said that as of Jan. 25 there were about 33 million
eligible options out of 537.6 million outstanding, and estimated they
will cost about $92 million.

On Tuesday the company reported a fourth quarter loss of $147.7
million, or 27 cents a share, compared to net income in the same period
last year of $257 million, or 42 cents a share.

http://www.bizjournals.com/sanjose/stories/2009/02/09/daily62.html