Can you guys believe it .. amd is going to be buying ATI. Full article will be out shortly on the wall street journal. I will post a copy. Anyone care to comment on the news?
LINK: www.wsj.com
ARTICLE BELOW:
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SAN FRANCISCO -- Advanced Micro Devices Inc. is close to an agreement to buy ATI Technologies Inc., people familiar with the matter said.
Terms could not immediately be determined. ATI, an Markham, Ontario, company that is best-known for graphics chips, currently has a market value of about $4.2 billion.
Spokesmen for the two companies declined comment.
The long-rumored deal, if completed, would open a new front in AMD's struggle with Intel Corp., its nemesis in the market for microprocessors. Besides offering those chips, which act as the brains of personal computers, Intel offers companion products known as chip sets that carry out other important functions in PCs. That is an important advantage in fields such as laptop computers, where Intel is able to use the combination of products to bring benefits such as reduced power consumption.
ATI, though best known for add-in graphics cards it sells in competition with Nvidia Corp., is also a major seller of chip sets, particularly for laptops. Like Intel, ATI offers built-in graphics along with chip sets. Those capabilities could help AMD offer a complete "platform" of technologies for laptops and are the main reason AMD is interested in ATI, one person familiar with the situation said.
The transaction is considered controversial, however. That's partly because AMD has generally enjoyed benefits from being a neutral partner for both ATI and Nvidia, particularly in supplying components for the high-performance PCs favored by game enthusiasts.
Several news outlets carried reports of a potential deal Friday, including the Inquirer Web site, the Globe and Mail and Bloomberg. ATI shares rose 83 cents, or 5.3%, to $16.56 at 4 p.m. on Nasdaq. Shares of AMD, which reported financial results late Thursday, traded at $18.26--off $3.39, or 15.6%--on the New York Stock Exchange.
LINK: www.wsj.com
ARTICLE BELOW:
-------------------------------------------------------------------------------------------
SAN FRANCISCO -- Advanced Micro Devices Inc. is close to an agreement to buy ATI Technologies Inc., people familiar with the matter said.
Terms could not immediately be determined. ATI, an Markham, Ontario, company that is best-known for graphics chips, currently has a market value of about $4.2 billion.
Spokesmen for the two companies declined comment.
The long-rumored deal, if completed, would open a new front in AMD's struggle with Intel Corp., its nemesis in the market for microprocessors. Besides offering those chips, which act as the brains of personal computers, Intel offers companion products known as chip sets that carry out other important functions in PCs. That is an important advantage in fields such as laptop computers, where Intel is able to use the combination of products to bring benefits such as reduced power consumption.
ATI, though best known for add-in graphics cards it sells in competition with Nvidia Corp., is also a major seller of chip sets, particularly for laptops. Like Intel, ATI offers built-in graphics along with chip sets. Those capabilities could help AMD offer a complete "platform" of technologies for laptops and are the main reason AMD is interested in ATI, one person familiar with the situation said.
The transaction is considered controversial, however. That's partly because AMD has generally enjoyed benefits from being a neutral partner for both ATI and Nvidia, particularly in supplying components for the high-performance PCs favored by game enthusiasts.
Several news outlets carried reports of a potential deal Friday, including the Inquirer Web site, the Globe and Mail and Bloomberg. ATI shares rose 83 cents, or 5.3%, to $16.56 at 4 p.m. on Nasdaq. Shares of AMD, which reported financial results late Thursday, traded at $18.26--off $3.39, or 15.6%--on the New York Stock Exchange.