Just saw this report at gamespot.com
As much as analysts aren't always right, they aren't always wrong, either. In May, RBC Capital Markets analysts said microprocessor manufacturer AMD was considering an acquisition of graphics-card maker ATI Technologies. Today, Reuters is reporting that AMD is close to a deal that would see it acquire ATI for $5.5 billion, citing "a source familiar with the situation" for the info. The source said a deal could be announced as soon as Monday. In suggesting the purchase in May, the RBC analysts noted that the idea of Intel or AMD purchasing a graphics-chip maker has been batted around for a while, and pointed out AMD's stated intent to increase its capacity in the coming years. As for ATI being chosen for acquisition instead of a rival company like Nvidia, the pair called ATI "a rare buy in the semiconductor space right now." ATI stock has lost almost 5 percent of its value since the end of May, but shares closed up more than 5 percent today to close at $16.56. Meanwhile, AMD has been taking a beating of late, losing more than 40 percent of its share value since May. Today alone, the stock dropped almost 16 percent to close at $18.26, and is down further in after-hours trading.
I think this could be a BIG leap forwards for both companies. Can't imagine why AMD is having some financial problems though, they make great gaming CPU's.
masterstevenx4Can't imagine why AMD is having some financial problems though
*cough* Conroe *cough* From what I've read, their stock started to drop as soon as Core 2 Duo performance specs started coming out.
This could be a good time to buy some AMD stock. We all know (err, hope) they'll be back on top eventually. They just need to release a good quad core cpu before Intel does.
I'm not sure what this acquisition would mean for the future in terms of rig building. Possibly nothing.
I didn't make it!
lol Oblivious yr DP made laugh out loud! So if AMD did buy ATI there will be no more ATI video cards it will be an AMD video card :-O
Videoslavelol Oblivious yr DP made laugh out loud! So if AMD did buy ATI there will be no more ATI video cards it will be an AMD video card :-O
i woulden't say that just quite yet... shelfing the ATI name in my opinion would be a very risky move, Lots of pweople would nto know AMD Radeons and may steer away from them. ATI has been around for a very long time, and once/if this deal goes through, i think ATI will still be around
There's already a thread on this subject: http://forums.filefront.com/showthread.php?t=266747
All it means is that ATI cards will be optimized for AMD, similar to Nvidia being optimized for ID games. However this is bad news for anti ATI but pro AMD people.
Link to a good article: http://www.dailytech.com/article.aspx?newsid=3453
Ehhh..... This in my opinion isn't such a hot move for AMD
a)The declining stock prices for both AMD and ATI are making this a very expensive deal for both of them.
b)The potenial backlash for AMD could be devestating. They could run the risk of losing a lot of potential customers who are more dedicated to their Nvidia cards than they're AMD processors.
c) What if Intel and Nvidia were to form a corporate allience with one another in responce to this move? An allience like that could potentially crush AMD.
I hate to point it out, but at least 80% of computers in the US have either an Intel processor, or an Nvidia video card. Chances are that alteast 60% have some combination of both.
The bottom line is that AMD is in no position to be doing this right now. They need to be focusing on making a faster processor to better compette with Intel. Right now, Intel has the entire processor market owned. AMD can't compete with them at the value, or high end level at the moment.
ITs a done deal. AMD has officially aquired ATI. I did not think it would happen so soon. This is a big gamble for AMD. One tthat could completly bite them in the ass, or prove to be a very powerful weapon against Intel. But what of nVidia? AMD and nVidia were chums for the longest time. Will their corperate partnership last this merger, or will they run straight into the arms of Intel??? more here http://theinquirer.net/default.aspx?article=33223
18th November 2004
Oh God, what were they thinking? AMD and nVidia were meant to be! AMD processors are the best, how can they pair up with a company that makes inferior graphics cards?
It's like a soap; where you just feel mad at AMD for cheating out on Nvida for ATI.
Chances are that Nvidia is going to run towards Intel, and they both plan on striking a deep blow to ATI+AMD.