AMD May Purchase ATI for U.S. $5.5 Billion

Advanced Micro Devices, the number two supplier of computer processors, is slated to purchase Canadian graphics chipset manufacturer ATI. The U.S.$5.5 Billion deal could be finalized by Monday, July 24th.

If the deal goes through, it would mean that AMD Corp. will be the owner of one of two major graphics chips providers, with Nvidia Corp. being the remaining one. Critics feel that AMD's decision comes at a strategically and financially poor time.

As AMD is already investing billions on processor capacity, any subsequent drain on the company's finances would be a liability to future projects. They feel that profit margins for graphics chips are smaller, which may reduce their base capital.

http://www.shortnews.com

7/23/2006 2:52:14 PM

I don't see "shortnews.com" as being a very reputable source.

This type of speculation about Company A buying Company B happens constantly.

7/23/2006 3:08:22 PM

shortnews is a good source. it pulls it's news feeds from the other major news sites.

here's the link shortnews referred to:

http://today.reuters.com/news/articleinvesting.aspx?type=comktNews&storyID=URI:2006-07-22T000712Z_01_N21314930_RTRIDST_0_TECH-ATI-AMD-UPDATE-2.XML&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage1

7/23/2006 3:51:23 PM

This has been rumored for nearly a couple months now.

http://www.forbes.com/markets/economy/2006/05/31/amd-ati-technologies-0531markets10.html

7/23/2006 4:31:58 PM

the rumors a couple months ago were analyst talk... now it looks like the idea may be a good idea and AMD is persuing it.

reputable source dated Friday

http://money.cnn.com/2006/07/21/technology/amd_atitech.reut/index.htm?section=money_latest

7/23/2006 5:38:01 PM

it's official

7/24/2006 8:13:21 AM

I think it will be good for both companies in a few years. Prolly be rocky for a little bit though.

7/24/2006 4:03:15 PM

socketed x86 based gpu's anyone?

7/24/2006 8:42:50 PM

that'd be crazy

7/24/2006 8:56:28 PM

nVidia would have been the much better buy because nForce is arguably the best chipset out there for AMD processor families. That + GeForce GPU would have provided AMD the edge they need in mobile.

They chose ATI because it was the cheaper of the two and nVidia isn't keen on being acquired. I think this is bad for AMD - they have absorbed significant debt because of this purchase and its going to absolutely murder their bottom line before they see any gain from it.

All in all I think the general consumer suffers from this deal

7/24/2006 9:00:09 PM

Quote :

"nVidia would have been the much better buy because nForce is arguably the best chipset out there for AMD processor families."

Quote :

"They chose ATI because it was the cheaper of the two and nVidia isn't keen on being acquired."

master of the fucking obvious, someone give this kid a cookie.

Quote :

"I think this is bad for AMD"

right now, at this point in time this is bad for AMD, depending on how things play out it could be good, or horrible, or make no difference. now look whos mother fucking master of the obvious.

7/24/2006 11:28:12 PM

I'd laugh my ass off if nVidia raised the prices on all their motherboards now.

7/24/2006 11:53:04 PM

it can't be that fucking obvious if they went ahead and did it anyway and everybody else above is shooting their load.

7/24/2006 11:55:57 PM

then everyone else above is slightly dumber than you

7/24/2006 11:57:52 PM