AMD/ATI in Trouble?

[tcsenter]

BTW, AMD merged with ATI, not bought, so wouldn't the combined ATI-AMD have the combined assets of both companies, including the majority of the stock issued and money paid to acquire ATI?

They call it a merger, but in fact AMD did acquire (e.g. bought) ATI. The only real differences between a merger and acquisition are the way the deal was worked out and how it is pitched to shareholders (or the public).

If Company A acquires Company B in a process of mutual cooperation where Company A essentially gives Company B as much say in how things are going to be done (or whether it will be done at all), its called a merger ('equals').

If Company A isn't really seeking approval from Company B, or one company is substantially larger than the other, its called an acquisition. However, the acquiring company often will allow Company B to call the deal a 'merger' purely in the interest of public or shareholder relations.

In both cases, one company is acquiring the other and the acquired company ceases to exist as a legal entity. Whether they decide that the name of the new company will be 'Company A', or 'A + B' (e.g. DaimlerChrysler or ExxonMobile), or an entirely new name, doesn't change the fact that one was acquired by the other.

 

[ElFenix]

Originally posted by: Wreckage

Originally posted by: Fox5
I really doubt that AMD will drop ATI's chipset division after acquiring them, it'd be a really stupid move.
Anyhow, AMD probably should just license SLI though, it'd be much easier than fighting an up-hill battle with Crossfire.

Crossfire and Chipsets were a very small part of ATI's income. In fact if you remove their chipset sales for Intel from the total it's almost nothing. AMD would lose very little by dropping them.

except for the ability to offer complete platforms, which is part of what they want.

 

[ElFenix]

Originally posted by: Fox5

Originally posted by: Wreckage

Originally posted by: Fox5
I really doubt that AMD will drop ATI's chipset division after acquiring them, it'd be a really stupid move.
Anyhow, AMD probably should just license SLI though, it'd be much easier than fighting an up-hill battle with Crossfire.

Crossfire and Chipsets were a very small part of ATI's income. In fact if you remove their chipset sales for Intel from the total it's almost nothing. AMD would lose very little by dropping them.

I thought ATI's Intel sales were abyssmal as well? Where ATI has been selling well though, is that nearly every AMD laptop has an ATI chipset.

BTW, AMD merged with ATI, not bought, so wouldn't the combined ATI-AMD have the combined assets of both companies, including the majority of the stock issued and money paid to acquire ATI?

money paid to acquire ati will be used to buy out ati's current shareholders. so the shareholders will have the money.