nVidia buying ATI?

[Doggiedog]

I'm hearing rumors that nVidia is in discussions to buy ATI.

I think it's a stupid move. What do you guys think?

I think it is Jen Hsun stroking his ego again.

 

[kami]

uh, links? or did you make up these rumors yourself?

 

[Doggiedog]

No, I didn't make it up.

There are rumors going around the street and there is a major hedge fund buying up NVDA shares thinking the deal is a positive.

 

[DannyLove]

i believe it. come on they bought out voodoo, they rule!

 

[kami]

That's because 3dfx's revenues went down some ~85% in one year....I don't think the same is happening to ATI. We'd have no competition at all and cards like the GF2 MX would be twice what they are now..

 

[Deeko]

I doubt it, 3dfx was small and worth nearly nothing. ATI is still big.

 

[Doggiedog]

Well, the thing is. I've met Jenhsun Wang personally. He is very egotistical and it wouldn't surprise me to see him buying ATI just to say he ran all his big competitors out of the business. ATI is doing horribly right now so it is a good time as ever.

But my feeling is why on earth would you want nearly 100% of the market when the market is only growing at 8-10% a year?

 

[chemos]

uhh.. ATI is doing quite well right now. maybe you should check your sources..?

 

[bigbootydaddy]

ugh, hes referring to the april fools joke that was going around. same with 3dfiles.com duke nukem forever demo.

 

[Doggiedog]

March 28, ATI met their revised 2nd qtr expectations but gave cautious guidance for their 3rd and 4th qtrs. Assuming they have flat revenues qtq they expect break even net income.

I wouldn't say that's doing too well.

 

[Electric Amish]

Maybe they'll just litigate ATI out of business like they did to 3DFX.

..or maybe they'll just steal their engineers and technology like they did with Matrox.

Fvcking Bastards! :|

amish

 

[SJ]

Would have to be doing alot worse than that to be bought out. 3dfx was doing bad, ATI is doing so-so.

Litigate? Haha, 3dfx started the whole courtroom battle, when Nvidia was still the little dog, Nvidia became the big dog, filed its own suit. 3dfx put themselves out of buisness.

 

[Doggiedog]

You may be right EA. I forgot that ATI had outstanding litigation against NVDA just like TDFX did. That may be a reason for a potential buyout.

 

[Adul]

SJ, #dfx would have won that case too had the not sold out.

 

[Electric Amish]

You might win, but what does that get you??

Ask Aureal what it got them, winning against Creative....

amish

 

[Aquaman]

I don't think the SEC would allow such a take over.

Just my opinion.

Cheers,
Aquaman

 

[falconx88]

DoggieDog could be right!


(All figures in U.S. dollars)
TORONTO, March 28 (Reuters) - Graphics chip supplier ATI Technologies Inc. <ATY.TO> <ATYT.O> posted a second-quarter loss on Wednesday in line with a recent warning, which blamed higher memory costs and weaker computer sales.
ATI reported a second quarter adjusted net loss of $26.1 million, or 11 cents per share, excluding items. That compared with a year-earlier profit, excluding items, of $44.8 million, or 21 cents per share. Analysts polled by research firm First Call/Thomson Financial expected a loss of 10 cents per share and revenues of $230 million.
Sales for the quarter ended February 28 came in at $232.4 million, a 39 percent decline from last year's $380.1 million.
ATI issued its second earnings warning for the quarter on March 1, forecasting an adjusted net loss of between 11 cents and 13 cents a share on revenues of $230 million. Analysts had previously expected earnings of 3 cents per share and revenues of $300 million.
($1=$1.xx Canadian)
New York Newsroom (212) 859-1700

EDIT:

ATI STOCK END OF APR 02 2001 TRADING ---> $6.90
NVIDIA END OF APR 02 2001 TRADING-------> $62.03

 

[Doggiedog]

Well, just because ATI had a weak quarter doesn't make me right.

I just think it is a bad idea if it happens to be true. One of my hedge fund colleagues thinks it's a positive. I just don't see anything positive coming out of buying a company just to grab marketshare.

An analogy would be Cisco buying 3Com, Bay Network and Cabletron just to get the lion's share of the switch and router markets a few years back.