July 22nd, 2006
AMD Buying ATI? Rumors Solidify
By Michael Santo
Contributing Writer, RealTechNews
The first I read about this was in the Inquirer. I’m certainly not going to post something based solely on information from them. However, since then, I’ve seen more information on this story, including places I trust, such as CNNMoney and TheGlobeandMail.
Chip maker Advanced Micro Devices Inc. is considering a $5.6-billion (U.S.) takeover bid for ATI Technologies Inc., a leading manufacturer of computer graphics chips, sources say. Source: GlobeandMail.com
Advanced Micro Devices Inc., the No. 2 maker of microprocessors for personal computers, is close to a deal to acquire Canadian graphics chip maker ATI Technologies Inc. for $5.5 billion, a source familiar with the situation said on Friday. Source: Reuters
We Say: From the GlobeandMail story, one analyst described such a deal as “a breathtakingly bad idea from a strategic perspective.” Myself … I’m not sure why AMD would need ATI … more the other way around. AMD, in my mind, has been doing a good job against Intel … at least until Intel’s latest offering. The main question is whether or not AMD can up with an answer to Core Duo, not whether buying a graphics company makes sense.
Bedammit says:
AMD makes other chips too!
I think that aquiring ATI gives ATI the “GPU” technology ATI touts.
This also allows AMD to compete against Intel in all on one Motherboard market more easily.
Note how many Intel motherboars have ATI raedeon video cards.
Seems like a decent parallel plan to increase AMD market share.
BeDammit
July 22nd, 2006 at 4:22 pm
Bedammit says:
Correction…
Aquiring ATI gives AMD the ATI “GPU” technology.
BeDammit
July 22nd, 2006 at 4:23 pm
dolphin_oracle says:
don’t forget ati makes chipsets
July 22nd, 2006 at 5:31 pm
David Johnston says:
I personally think this would be a bad idea as it would push nVidia away and nVidia has made the best AMD chipsets for years now…ever since the nForce 2 for the Athlon XP.
July 22nd, 2006 at 6:39 pm
Inglix the Mad says:
Agree with you here David. I doubt it’s really true, or hope so, because the best combination of hardware (for AMD) for years has the AMD/nVidia. No other company’s chipsets quite measure up. The ATI chipsets used recently? Pfftt!
Now if this is true, and that’s a HUGE if, AMD will alienate the best partner it’s had since the original nForce. Yeah, nForce was kinda raw, but it was the start of a great gaming series.
Of course there may be some super secret ATI weapons in the wings, of course I doubt it.
July 23rd, 2006 at 5:30 am