AMD and ATI Have Reached Acquisition Agreement ? Web-Site.

Gamer X

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Feb 11, 2005
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Advanced Micro Devices, the world?s second largest maker of microprocessors, reportedly has reached agreements with ATI Technologies in regards the acquisition of the latter. No details are known, but this is the second time when rumours concerning the acquisition break out in the last several weeks.

?On the July 4, a person close to the negotiations revealed that AMD has reached a purchase agreement with ATI, the news will soon be officially announced,? a news-story at Chinese web-site Sohu.com reads.

Early in June an analyst with RBC Market Capitals said that he would expect AMD to acquire ATI Technologies, as he thought it was consistent with AMD?s plans to expand capacities. Acquisition of ATI would give AMD a strong team of engineers and rich product portfolio not only consisting chipsets and graphics processors, but also chips for consumer electronics, mobile phones and even technology licensing agreements with Microsoft Corp. and Nintendo. But while AMD would gain ability to offer all-in-one platforms, like Intel Corp. does, acquisition of a quite a big company may impact AMD?s ability to spend on boosting its manufacturing capacities or developing new technologies.

There a lot of differences between AMD and ATI as well. If the former has been concentrating on development and manufacturing of microprocessors, gradually withdrawing from any other markets, the latter has been trying to enter broader markets with its various products, which are built by third party manufacturers, such as Taiwan Semiconductor Manufacturing Corp. (TSMC) or United Microelectronics Corp. (UMC).

At press time ATI?s market capitalization was $3.83 billion, market capitalization of AMD was $11.54 billion. Meanwhile, ATI had $607.03 million in cash, while AMD, who has been enjoying performance lead over Intel Corp. for several recent quarters, had $2.63 billion in cash.

ATI denied to ?comment on rumours?.
 

TanisHalfElven

Diamond Member
Jun 29, 2001
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actually its very good for consumers. amd will be able to offer chipsets and graphics like intel (igp). it sways a lot of ppl to intel cuz they offer intell chipsets. also this way amd won't go under even if they lose to intel on the perofrmance fron for the next few years meaning amd's competition will always be around to force intell to behave.

it may also lead to crazy optimisations for amd on ati platforms which is good for ati owners
 

Lonyo

Lifer
Aug 10, 2002
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That linked website (Sohu) has said this for a while, but I would have expected some other website to also have the news by now if it was true (news from a different source), especially as it supposedly happened 2/3 days ago.
 

Gstanfor

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Oct 19, 1999
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Fraud will probably join the party soon...

I really can't imagine why this would take place unless AMD is hellbent on throwing some sort of monkey wrench into intels works somehow (ATi & Intel are longtime partners).

It seems to me that the money required for this exercise would be better spent as downpayment on a new Fab.
 

Griswold

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Dec 24, 2004
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Originally posted by: Gstanfor

I really can't imagine why this would take place unless AMD is hellbent on throwing some sort of monkey wrench into intels works somehow (ATi & Intel are longtime partners).

Doesnt surprise me. Anyway, lets point the most obvious out:

1. AMD has fabs and will continue to build fabs. The know-how is there - ATI does not have that.
2. ATI has the ability to produce chipsets and is especially strong on the mobile mainstream market - AMD does not, or rather dropped the ball on this field a long time ago.
3. Both AMD and Intel have been thinking loud about integrating video core logic to their CPUs or other features of chipsets. Intel has everything needed to make such a step, AMD does not. With ATI onboard, they would obtain that know-how.

Just because of a merger or takeover, ATI/AMD wouldnt have to stop producing chipsets for intel. Its good money after all.

I'm doubtful that it'll happen. If at all, it'll be a merger on almost equal terms.
 

Lonyo

Lifer
Aug 10, 2002
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Originally posted by: 5150Joker
I think this is the same b.s. rumor started at the Chinese site making its rounds to various websites as news.

Well yes, since the story links to aforementioned Chinese "news" site, but it definately is making the rounds.
Plus you would expect theInq to jump on it.