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AMD to buy ATI

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Advanced Micro May Buy ATI for About $5.5 Billion, Person Says

July 21 (Bloomberg) -- Advanced Micro Devices Inc., the world's second-biggest maker of microprocessors, plans to buy ATI Technologies Inc. for about $5.5 billion, according to a person involved in the negotiations.

A deal for Markham, Ontario-based ATI may be struck in the next few days, according to two people briefed on the discussions, who declined to be identified because the talks are confidential.

ATI is battling with Nvidia Corp. to be the No. 2 maker of computer-graphics chips behind Intel Corp. Buying ATI may help Sunnyvale, California-based Advanced Micro in its efforts to keep taking market share from Intel, the world's largest semiconductor maker. The purchase would be the biggest in Advanced Micro's 37- year history and signal its commitment to challenging Intel.

``It may be a step AMD has to take,'' said Cody Acree, an analyst at Stifel Nicolaus & Co. in Baltimore. He rates Advanced Micro shares ``hold'' and said he doesn't own them. ``They may be saying, `If I'm going to be an Intel equivalent, I need to be able to offer the market the things Intel can.'''

Dave Kroll, a spokesman for Advanced Micro, said the company doesn't comment on rumor or speculation. ``It's still a rumor to me and no one here can speculate on rumors,'' ATI spokesman Dave Erskine said.

Buying ATI would Advanced Micro to package graphics chips with its latest processors and get them to customers faster, Acree said.

Shares of Advanced Micro fell $3.39 cents to $18.26 in New York Stock Exchange composite trading. ATI rose 83 cents to $16.56 in Nasdaq Stock Market composite trading.

Source: bloomberg.com

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ive heard this a while back too. also a rumor before that about intel buying them. im not sure if this is a smart move or not, as digeratiprime says.

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Lots of bad things. They're stuck in an interesting position now. ATI's main revenue apart from GPUs are their chipsets. And for the uninformed, these chipsets are mostly targeted for Intel processors. So if AMD drops that market, then their stock price will suffer, but if they don't, then they're helping their competitor. Also Nvidia was the best AMD chipset manufacturer. With ATI in AMD's backpockets now, I'm not sure Nvidia will still want to make chipsets for them, although if they don't, expect their stock prices to drop as well. Overall, an interesting and very chaotic scenario, with the end result being prices rising from the decreased competition.

Edited by Aegis

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Advanced Micro Devices Inc (AMD.N: Quote, Profile, Research), the No. 2 supplier of computer processors, said it would acquire graphics chip maker ATI Technologies Inc. (ATYT.O: Quote, Profile, Research) for $5.4 billion in cash and stock to expand its product mix and grow market share as it battles Intel Corp. (INTC.O: Quote, Profile, Research).

AMD said it would pay $20.47 per share for each share of ATI, a 24-percent premium to ATI's closing price on Friday. ATI's shares rose 5.3 percent on Friday and rallied a further 7 percent to $17.68 after close of trading hours.

Full article

http://yahoo.reuters.com/news/articlehybri...News&rpc=44

Edited by RJM

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aegis, i totgally agree with you. there was also a rumor a while ago about amd buying nvidia, but nvidia is just too big and too expensive.

http://abcnews.go.com/Technology/wireStory?id=2228494

abc news confims this too. well i guess that amd is buying ati... im just not sure if this is smart. i love the nvidia chipsets, i rly hope nvidia will still make them for amd. i also wonder if amd will work on something that will help amd cpu's and ati gpu's talk to eachother faster/better.

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One of the greatest advantages of Intel is that they Setup Chipsets for their own perocessors.

That allows tighter interation of the m/b and the components

if AMD also goes that way,it would certainly a leap for AMD

AFAIK AMDs weakness is that

they build only CPUs no setup chipsets for the CPUs

The AMD cpus are far more better than intels in capabilities even though has less speed than intel couterparts.

Sometimes the CPU is even bottlenecked by the limitation of m/b

cpu makers know their chips better than others, building chipsets by them will be the best ans stable (like intel)

However lets wait n' see whats goin' on :whistle:

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Although i think the Nvidia chipsets are clearly far superior to the Ati ones it will be interesting to see what happens , Those new fancy Ati PhysX demonstrations were rather impressive.

http://www.bit-tech.net/news/2006/07/24/in...hipset_license/

It has happened , and Intel have already ditched ATI now because of it. Seems Intel fanboys are gonna be abit screwed seeing as nvidia doesnt like intels garbage and would rather make chipsets for AMD

Edited by Scubar

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i just like nvidia too much, hopefully ati will make a good chipset but i doubt it.

rd600-features.jpg

and i love how this may be one of the last ati-intel chipsets. lol

now all amd needs to do is buy nvidia in a few years :) then its the best of both worlds

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Its already confirmed, AMD now owns ATI , they bought the company for around $6 billion. Nvidia have also stated they will continue making chipsets for AMD processors. Intel have said they might go back to making integrated graphics soloutions for the meantime, All this hype about Conroe and Kentsfield and its not gonna be much use when they have no graphics cards to play games on PMSL

Edited by Scubar

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UPDATE : Microsoft revokes / Not Prolongs, ATI chipset licence...

this means, if its true, there will only be an Nforce chipset left for professional Workstations.

it this in fact is true, i dare to geuss that the conrou might be loosing some market share by loosing those wanted a conrou with an ati crossfire - as also migrating from ati crosfire to nvidia sli willl 'most likely' cost mutch more that the power gain of buying conroe instead of opteron / althon FX chips.

based on the inquirer....

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