AMD and ATI merger 4 replies

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Dragokatzov

GF is my bext friend *hugs GF*

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24th January 2005

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#1 12 years ago

well not quite. but a very interesting proposial has been issues to AMD and ATI shareholders; a merger between the 2 companies. This could put a really big dent in chipzilla's (intel) plan for world domination. ATI is helping Intel out in the low end chipset area, and Intel may not want their business if they merge with ATI. However, if this plan does go through Graphzilla (nVidia) will diffinally be re evaluating its current partnership with AMD

read more here http://theinquirer.net/default.aspx?article=33185

This should make Intel a little more weary of they know whats good for them. true, Intel had been going necular on AMD's ass as of late, but this could hurt them in the low end market, an area where AMD has had problems.

So, over all, what are your reactions to this? this could very well help AMD's 4X4 platform as well.




Revenge VIP Member

Shizzle my nizzle

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28th July 2004

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#2 12 years ago

I've never found TheInquirer's stories to be the most reliable, but that's certainly interesting. It would be great if nVidia decided to team with AMD as well, but that probably wouldn't happen - they'd go to Intel to preserve their Dell profits.




marvinmatthew

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13th April 2005

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#3 12 years ago

Well it could be very good for AMD/ATI, or very bad.

Quite simply, most manufactorers would eiter pickup one product line (say, an AMD purchaser would start buying ATI cards), or they would drop one product line (an AMD purchaser would stop buying as many AMD chips because they gerally buy lots of NVIDIA cards).




*The.Doctor

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25th November 2003

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#4 12 years ago

If this happens, i'm undecided if it will be be for the best or worst. for the same reason that marvinmatthew said.

I've never found TheInquirer's stories to be the most reliable

Thats what i was thinking, any info on this from any more reliable sources?




marvinmatthew

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13th April 2005

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#5 12 years ago

Yup the story is true, here's the link to the MSNBC story: http://msnbc.msn.com/id/13976744/

MSNBCAdvanced Micro Devices is near to buying the Canadian graphics chipmaker ATI Technologies for around $5.5bn, according to people close to the deal. Any agreement would represent a major gamble by AMD to put itself on a level footing with its bigger rival Intel, which makes its own graphics chips.

The asking price suggests AMD would have to offer a substantial number of its own shares as part of the deal or take on debt. It had cash balances of $2.5bn at the end of June, but is spending billions on developing new chip plants, including $2.5bn in capital expenditure next year.

An AMD spokeswoman said on Friday it did not comment on rumour or speculation. Its shares closed nearly 16 per cent lower at $18.26 after poor second-quarter results and rumours of the deal. ATI's finished 6 per cent higher in Toronto at $18.77.

The takeover, which could be announced in the next few days, could also be a blow to AMD's Silicon Valley neighbour Nvidia, whose shares fell 7.5 per cent on Friday. AMD has combined its microprocessors with both Nvidia and ATI graphics chipsets, but may side in future with ATI's products.

At the same time, ATI has been providing third-party chipsets to Intel and could lose that business if it is bought by AMD.

Analysts have long speculated that the bigger microprocessor companies could buy the graphics chipmakers, but the logic has never been compelling. Intel is already the biggest maker of graphics chips with the integrated chipsets it sells for computer motherboards. It is also in a cost-cutting mode and has just sold its division making chips for mobile phones.

AMD has always reasoned it can offer best of breed graphics by choosing chipsets from either ATI or Nvidia. It has also sought to focus on microprocessors after spinning off its Spansion memory chip business last December.

But it may feel it has to match Intel's graphic abilities to compete with it in future in new markets such as the "digital home".

In its last quarter, 23 per cent of ATI's total sales and 70 per cent of its operating income came from non-PC businesses, according to Merrill Lynch. It reported revenues of $653m for the quarter and earnings per share of 12 cents.