Charlie Posted July 24, 2006 Posted July 24, 2006 Advanced Micro Devices (AMD), the chipmaker that has started supplying processors for Dell computers, has agreed to buy rival ATI Technologies. AMD wants to boost sales and close the gap between it and market leader Intel. It will pay $5.4bn, $4.5bn (£3bn) in cash and make up the rest in equity. That values ATI shares at $20.47 each, 24% more than their close on Friday. Despite concerns about the price of the deal, analysts said buying graphics chipmaker ATI did make sense for AMD. "It's a brilliant strategic move," said Eric Ross, an analyst at ThinkEquity Partners. "AMD essentially have cornered the high end graphics platform for themselves. Intel is getting squeezed out there." In electronic trading before the open of the US stock market, AMD shares dropped 8% and ATI shares jumped 16%. AMD said the deal would help it expand its products in the commercial, mobile computing and gaming sectors. It also would help it expand its media and emerging market offerings. http://news.bbc.co.uk/1/hi/business/5210276.stm
Konfucius Posted July 24, 2006 Posted July 24, 2006 Well seems it's finally official. I wonder what that will mean for the PC gamer. Do we need an Athlon and ATI graphics card to get the best performance out of the system or will ATI only support AMD now - although that would mean they'll use all Intel costumers.
pedrocasilva Posted July 24, 2006 Posted July 24, 2006 now let's wait and see if the american comitee aprooves of that... the Adobe and macromedia merge was stoped for months due to it.
gaggle64 Posted July 24, 2006 Posted July 24, 2006 I just hope AMD doesn't get too big for it's boots. I can imagine the EU having a few issues with this in maintaing an effective, competitive market. Quite right too, in my opinion.
Fuzpoy Posted July 24, 2006 Posted July 24, 2006 Not bad for AMD. if i remember correctly AMD are making the CPU for the Wii and ATI are doing the GPU.
pedrocasilva Posted July 24, 2006 Posted July 24, 2006 Not bad for AMD. if i remember correctly AMD are making the CPU for the Wii and ATI are doing the GPU.IBM is doing the CPU for Wii, it's PowerPC based.
McPhee Posted July 24, 2006 Posted July 24, 2006 this isnt exactly good news, how long before AMD make CPUs and GPUs that are tailored to each other? It could render NVIDIA and other GPU manufacturers useless for AMD CPUs
gaggle64 Posted July 24, 2006 Posted July 24, 2006 could mean cheap but decent integrated jobbies Could mean expensive and nasty products that everyone has to buy anyway because they've become too powerful to compete with and effectively cornored the market. (see also: Microsoft)
Gaijin von Snikbah Posted July 24, 2006 Posted July 24, 2006 Im not so sure this is a good deal. I like ATI the way it is.
Dieter Posted July 25, 2006 Posted July 25, 2006 Could mean expensive and nasty products that everyone has to buy anyway because they've become too powerful to compete with and effectively cornored the market. (see also: Microsoft) Have you seen the stuff Intel's Conroe can crank out? AMD's sweating, and rightfully so.
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