AMD, ATI Deal Confirmed

By Michael Santo
Contributing Writer, RealTechNews

Rumors have been flying, and this morning it was confirmed. AMD will acquire ATI for $5.4 billion.

The AMD-ATI marriage could shift the balance of power in the chip industry in significant ways. AMD’s product portfolio which has remained limited to the microprocessors that act as a PC’s main calculating engine would balloon overnight, as it folds in two major new chip categories.

Markham, Ontario-based ATI, which makes chipsets and graphics chips for PCs, also makes a host of semiconductors for consumer products, such high definition TVs and cell phones. Source: AP Via ABC News

We Say: ATI has a page on their site where they talk about the new “processor powerhouse”, as they put it. AMD has the same page on its site. What this really means and how this really works out remains to be seen, and analysts still disagree on whether or not the deal makes sense.