AMD aproves aquisition of ATi.....

[NoStateofMind]

Got this from another forum. Dillusion's thread here

Reports claim a $5.6B deal is about to close on an unprecedented merger

According to a report in The Globe and Mail, the board of directors at AMD has allegedly approved the takeover of Canadian graphics firm ATI Technologies. The reports said that the information was released by an investment banker that was part of the discussions. According to other sources, AMD executives were also seen at ATI's headquarters in Thornhill, Ontario. The report indicated that AMD is considering a $5.6 billion takeover bid for ATI.

Speculation and rumors have run rampant over the last several months about the possible merger between AMD and ATI, but no concrete details have been revealed. According to reports on ATI's share prices, the company's shares have been trading at double the usual volume today. Analysts said that AMD would be making an offer of 20 to 40 percent premium to ATI's current share price. ATI shares traded at $16.12 on the NASDAQ today during after hours, which is up 39 cents from yesterday's closing.

Reuters has also picked up on the story, claiming that "Some analysts have questioned the rationale for an AMD-ATI merger, and others were surprised that the speculation received no attention from analysts during AMD's earnings conference call on Thursday." DailyTech had punched in for question during the investor conference call on Thursday, but a moderator would not respond.

According to Eric Gomberg, an analyst for investment bank Thomas Weisel Partners, "there has been considerable industry speculation that AMD may pursue an acquisition of ATI Technologies, although such an outcome is by no means certain." Gomberg's comment came in earlier this week, but word circulating around investment bankers who are aware of the talks between ATI and AMD surfaced just several hours ago.

Recent reports indicated that Intel roadmaps no longer included ATI chipsets. Although Intel had been producing motherboards using ATI logic, upcoming boards like those that support Core 2 processors are void of any chipset from ATI. Interestingly, ATI and Intel had agreed to several cross-licensing programs that allowed them to take advantage of some of each other's technologies. Several analysts however, indicated that the merger between AMD and ATI to be "out of strategy for AMD and out of focus. Stupidity is no barrier to tech mergers."

A report in the Wall Street Journal confirms the talks between AMD and ATI (subscription required) today. Although the deal is not final, the report said that representatives from both companies declined to comment.

AMD has previously indicated that it would embrace embedded processor technologies for its Torrenza platform -- some of which would include math and physics co-processors. However, the company has recently exited all non-x86 processor design.

By DailyTech.

 

[kpamir]

the only thing thats going through my head is ....... why?

I dont see any benefits to us consumers or to AMD.

 

[n7]

WTF do we need a 100th thread on this?!
You coulda posted this in one of the other AMD buys ATi threads.

 

[BlingBlingArsch]

two smaller companies grow together to fight INTEL and NVidia...good luck!

 

[OBCT]

Originally posted by: kpamir
the only thing thats going through my head is ....... why?

I dont see any benefits to us consumers or to AMD.

Stop being so naïve.

 

[CKXP]

Several analysts however, indicated that the merger between AMD and ATI to be "out of strategy for AMD and out of focus. Stupidity is no barrier to tech mergers."

 

[NoStateofMind]

Originally posted by: n7
WTF do we need a 100th thread on this?!
You coulda posted this in one of the other AMD buys ATi threads.

Thanks for your contribution the the thread. Don't like it? Too bad my friend

 

[Kromis]

Originally posted by: PC Surgeon

Originally posted by: n7
WTF do we need a 100th thread on this?!
You coulda posted this in one of the other AMD buys ATi threads.

Thanks for your contribution the the thread. Don't like it? Too bad my friend

Lol. Well, you could've saved some thread space for other *important* threads.

 

[thescreensavers]

does this mean I cant buy an nvidia gpu anymore wiht amd cpu!!!!

 

[NoStateofMind]

Originally posted by: Kromis

Originally posted by: PC Surgeon

Originally posted by: n7
WTF do we need a 100th thread on this?!
You coulda posted this in one of the other AMD buys ATi threads.

Thanks for your contribution the the thread. Don't like it? Too bad my friend

Lol. Well, you could've saved some thread space for other *important* threads.

Oh yes, the important one's .....right

 

[NoStateofMind]

Originally posted by: thescreensavers
does this mean I cant buy an nvidia gpu anymore wiht amd cpu!!!!

After this merger, you will no longer be able to use ATi with Intel nor nVidia with AMD /Sarcasm

 

[Furen]

I think the Intel chipsets will be given a slow and painful death, though (like nVidia gave the ULI southbridges for ATI mobos).

 

[Keysplayr]

I think it will be good. AMD is trying to become Intel's "mini-me" I suppose. AMD will now make it's own chipsets..... again. And become a player in the integrated graphics market. I hope AMD and ATI both thought this through and have an awesome game plan. 5.6 billion is enough money to build two new fabs. Heard they were a couple of billion apiece. New stock ticker = AAMTDI hehe. If this is all for the torrenza, (speculating) it better be one hell of a setup. Sounds real good on paper.

 

[edmundoab]

Hmm, so they can get ATI to custom make motherboards optimized for AMD chips?