AMD to Buy ATI?
by Chris Remo, May 31, 2006 3:32pm PDTIn a move that would have huge implications in the PC gaming world, semiconductor manufacturer AMD may be preparing to buy graphics card provider ATI. A report issued by Apjit Walia of the Royal Bank of Canada's Capital Markets group notes AMD's plans for expansion as well as the attractive position ATI holds as a potential buy. Walia would consdier such a move beneficial for the graphics industry as a whole.
"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years," wrote analyst Apjit Walia in a note to investors Wednesday. "We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics." ...Meanwhile, Intel isn't doing quite so hot. Earlier this month, it was revealed that computer maker Dell, which has long used Intel chips exclusively in its machines, will start using AMD products as well. This comes not long after Dell's purchase of smaller manufacturer Alienware, which also uses AMD and Intel chips. Intel's recent price cuts, according to Walia, have given the company a boost in market share but have been detrimental to its bottom line. An AMD/ATI merger would make things tougher for Intel in the personal computing space, on which Walia believes Intel has been putting too much emphasis. Rather, the company should focus more on expanding to other markets, he says, given the continuing messy battle with AMD in the core PC market.
It has long been discussed that the graphics-companies are likely to be bought by one of the microprocessor companies, according to Walia. However, for AMD-rival Intel (nasdaq: INTC - news - people ), a partnership with a graphics company may not be the best idea.
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Comments
one of their recent issues (just quoted from wiki): "On May 31, 2004, a problem during a routine software update affected the accounts of ten million customers. For three days, the entire RBC system failed to register withdrawals and deposits against customer balances. The problem cost the bank C$9 million to resolve."
For the three days, they also failed to notify their customers, and they still tried to sell useless bank shit even though the system was down.
GG.
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This move looks to me like they want control to streamline the CPU/GPU interface and have the real power to juggle the CPU/Memory/GPU loop...
ouch
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I've never, ever had any good experiences with either. Maybe them coming together will cause some rip in the fabric of space-time and the new, merged company will simply vanish from existence.
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SEC filings show that AMD has about $800 Million in cash while ATI has a market cap of around $6 billion. You do the math.
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I have to wonder if the Quality of the Products will go up or down??...
Hmmm....
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What was one of the biggest problems with the Athlons when they first came out? No not heat, the other problem? The AMD chipsets were not so great. When did AMD really start hitting their stride? That's right when nvidia came out with the nforce (2 specifically) and AMD totally gave up on the idea of doing chipsets. Why would AMD want to give up the nvidia chipsets and start going with ati chipsets?
I've heard rumors of the upcoming chipsets from ati are supposed to be good, but the nvidia chipsets aren't being compared to the ati ones in all the articles out there... it's always ati is trying this in their chipset and it is close to what nvidia has been doing for a while, but it doesn't quite reach that level.
Unless of course AMD thinks that graphics chips are the primary breadmaker from this point fwd then I can see no reason buying ati would be reasonable.
For full disclosure I use nvidia chipsets, AMD processors, and ati video cards -- oh and I'm not a business major (so the deal will probably be announced next week).
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Holy shit.
way to make progress from shoddy 486 chips and competing with Cyrix.
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