AMD buyout ATI at $5.4B

PUN

Golden Member
Dec 5, 1999
1,590
16
81
good thing I bought some serious number of stocks in ATI 4 weeks ago :)
 

Amplifier

Banned
Dec 25, 2004
3,143
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Originally posted by: Stoneburner
the inq was also wrong as it said there was no chance in hell it would happen.

they had two different opinion pieces on it showing both sides and as with most deals it fluxuates back and forth but in general they've maintained it would happen before anyone else
 

ntdz

Diamond Member
Aug 5, 2004
6,989
0
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ATI for $5.4B seems like an absolute steal for AMD. This merger sure changes the dynamic of intel vs. amd and nvidia vs. ati.
 

PUN

Golden Member
Dec 5, 1999
1,590
16
81
I just sold all my ati stocks and bought Intel stocks.
Intel just dropped ATI from their line and will have strong relationship with Nvidia.
 

techs

Lifer
Sep 26, 2000
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I wonder how this affects VIA?
I noticed that the last year and a half VIA has seemed to concentrate on Intel chipsets and neglected AMD.
Shame because I really like the VIA chipsets for AMD since they were more stable than others.
I wonder how the big manufacturers will respond since they have always had a pro ATI bias and always seemed more comfortable with putting ATI in their intel boxes.
 

dullard

Elite Member
May 21, 2001
26,066
4,712
126
Originally posted by: daveshel
Too bad I didn't sell some AMD shares 4 months ago :(
I said over and over again to sell AMD in this thread.
Originally posted by: ntdz
ATI for $5.4B seems like an absolute steal for AMD. This merger sure changes the dynamic of intel vs. amd and nvidia vs. ati.
I agree that it will change the dynamics. But why is it a steal? ATI has averaged $52M/year of profit over the last four years. So if ATI stays on that path and AMD got its financing with 0% loans, then AMD will break even in a mere 103.9 years*. In reality, AMD won't get a 0% loan. The yearly finance charges on the loan AMD secured for this purchase will likely be higher than the yearly profit from ATI. Unless AMD can drastically cut costs at ATI, or drastically boost AMD's products, this isn't going to be a money maker for either AMD.

Note: I realize that my numbers are silly. Profits in the past are not going to repeat themselves, profit could be higher or lower than $52M/year in coming years. But it does put things into perspective.

* I assume in 103.9 years the value of ATI facilites, IP, equipment, etc that AMD is buying now will have degraded to the point that they are worthless.
 

KevinH

Diamond Member
Nov 19, 2000
3,110
7
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Originally posted by: dmcowen674
This sucks DonkeyAss.

I've always like AMD systems with Nvidia Video cards, now they won't work :|

Why woulnd't it work man? I have ATI cards on Nvidia boards with no problem.

 

ebaycj

Diamond Member
Mar 9, 2002
5,418
0
0
Originally posted by: KevinH
Originally posted by: dmcowen674
This sucks DonkeyAss.

I've always like AMD systems with Nvidia Video cards, now they won't work :|

Why woulnd't it work man? I have ATI cards on Nvidia boards with no problem.


Also, who said that AMD is going to kick nvidia out of the (athlon64) chipset market? My guess is that AMD is doing this to get a current-model chipset in-house so as to entice DELL.

 

Zebo

Elite Member
Jul 29, 2001
39,398
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Originally posted by: PUN
I just sold all my ati stocks and bought Intel stocks.
Intel just dropped ATI from their line and will have strong relationship with Nvidia.

Good buy - will be $50 by years end.
 

Harvey

Administrator<br>Elite Member
Oct 9, 1999
35,059
73
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Originally posted by: dmcowen674
I've always like AMD systems with Nvidia Video cards, now they won't work :|
How do you figure that? I like the same combo. I doubt AMD's products won't support vid cards other than ATI's.
 

daniel49

Diamond Member
Jan 8, 2005
4,814
0
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Originally posted by: dmcowen674
This sucks DonkeyAss.

I've always like AMD systems with Nvidia Video cards, now they won't work :|

Obviously just another power grab by the rich republican corperate whores to stick it to you personally;)
 

sandorski

No Lifer
Oct 10, 1999
70,789
6,349
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Once the ink dries on the paper, you all have 12 hours to replace your Nvidia cards with ATI. At 12 hours past, a button gets pushed at AMD HQ and Nvidia cards stop working!! :eek:
 

straightalker

Senior member
Dec 21, 2005
515
0
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More consolidation at the very end of the product spectrum?

I prefer more players.

It keeps the game from turning into Monopoly.
 

JEDI

Lifer
Sep 25, 2001
29,391
2,738
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ATI share price has dropped 50% in the past 6 months. i think they were in serious trouble and AMD is the white knight...
 

servcarpenter

Senior member
Aug 11, 2004
321
0
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I just read about this in my paper. This makes me mad, I prefer Nvidia cards and AMD processors but they had to buy ATI. What's up with that? Oh well they should still be compatible. Though it might not work as well, and the price difference could be big. Oh well. Not much I can do!
 

sonoma1993

Diamond Member
May 31, 2004
3,414
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In the upcoming future, with amd/ati merger. How will this effect chipsets for amd processors?