AMD-ATI redux

[Dr Mordrid]

Reuters;

PHILADELPHIA, July 21 (Reuters) - Advanced Micro Devices Inc., the No. 2 supplier of computer processors, is close to a deal to buy graphics chip maker ATI Technologies Inc. for $5.5 billion, a source familiar with the situation said on Friday.

Any such deal would shake up the processor industry, which is witnessing a battle over market share between AMD and larger rival Intel Corp.

ATI is one of two major graphics chips makers, along with rival Nvidia Corp., and is a big supplier of chipsets -- the cluster of secondary chips and interfaces that surround a computer's processor -- to both AMD and Intel.

Unless talks break down, a deal could be announced as early as Monday, the source said.

Financial Times;

Advanced Micro Devices is near to buying the Canadian graphics chipmaker ATI Technologies for around $5.5bn, according to people close to the deal.

Any agreement would represent a major gamble by AMD to put itself on a level footing with its bigger rival Intel, which makes its own graphics chips.

NVIDIA stocks down 7.5%
ATI stocks up 6%

[Jammrock]

AMD stock is down because they had lower than expected revenue for the last quester, because people stopped buying AMD in anticipation of Core 2 and the price drops that would come from the current CPU war.

ATi stock is up becuase AMD is rumored to be paying more than ATi is worth

Here's an interesting comment on the merger from outspoken founder of VoodooPC:

http://voodoopc.blogspot.com/

Jammrock

[Dr Mordrid]

From your link;

I am going out on a limb – I, like many others, believe this deal is imminent and I am offering up my reasons why I believe this deal makes sense.

As many of you know I have always said that ATi is a target for acquisition, and I truly believe they are a diamond hidden deep in the rough – and with a little bit of polishing this acquisition will go down in history as the best move that AMD ever made. ATi + AMD = a go big strategy that will shake the very foundation of our industry.
>
AMD has some great platform solutions slated for next year, including server, workstation, notebook, etc. I can’t get into too many details, but in my mind AMD + ATi = one large company with the potential of becoming a massive juggernaught. Any debt that AMD incurs to make this transaction a reality will be short lived. The long term outlook on AMD is unbelievable if this deal is approved – this company will go big, and those along for the ride are going to reap huge rewards.

As usual, initial reactions to change are always negative - but long term thinkers who truly understand the technology will tell you this deal is the one way that AMD can turn the tides in their favor.

[DGhost]

I honestly believe this is going to hurt the PC industry in the long run. And I think it honestly could wind up really damaging ATI or AMD in the process.

all personal views on ATI's graphics and chipset platforms aside...

the *only* benefit it would produce is finally having a company that is large enough to rival Intel.

The bad side is that the industry does *not* need another Intel. It does not need single-company computing platforms, it does not need more proprietary technologies and it does not need another juggernaut.

AMD has survived this long by being the little guy - by being faster and smaller and able to adapt to the market easier. Manuever warfare. This move would put them square into Intel's path and take away the few advantages that they had to stay alive.

on a side note: I think their embedded platform would actually benefit the most from an aquisitioin. far more so than the PC platform would.

[ZokesPro]

the *only* benefit it would produce is finally having a company that is large enough to rival Intel.

I think that it's not only to rival Intel but also Apple. They doesn't use very many nVidia gpu's in their laptops.

[Mehen]

This REALLY pisses me off, this means the consumer might lose the ability to mix and match AMD/Intel and nVidia/ATI. And who knows what this will mean for the console world in a few years when the NEXT gens come out - do you think AMD would let the consoles use an ATI card if they are using an IBM cpu? Then we will see Intel buy nVidia, and everything will be less and less customizable, and we will all end up with pre-built machines. Then eventually either Intel or AMD will outright win, there will be a total monopoly, and then Microshaft will buy out the winner, buy out the country, and then the world. Bill Gates will reassume power and become the ruler of the galaxy. Physical activity will drop to an alltime low as he forces people to only play computer based games, the people will end up becoming weak and unhealthy and will be totally unable to repel an invading alien force who will then wipe out our species.
AMD buying ATI will bring about the end of the world.

[ZokesPro]

LOL, it's a possibility.

[DGhost]

I think that it's not only to rival Intel but also Apple. They doesn't use very many nVidia gpu's in their laptops.

Apple is more of a non-issue. They rely on other companies platforms to produce their products. AMD would sell to them in a heartbeat if they actually had a platform that Apple was seriously interested. At this point they cannot offer the sort of platform that Apple would be interested in, although a merger could change that.

Biggest thing I see is it causing more stagnation in the PC industry. not a good thing.

[Mehen]

Biggest thing I see is it causing more stagnation in the PC industry. not a good thing.

You mean besides the end of the world right?

[Jammrock]

It's officially official. Directly from AMD:

http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~110899,00.html

[GT98]

Biggest thing I see is it causing more stagnation in the PC industry. not a good thing.

As much as I hate to say it, well hasn't that been happening already? The demand for high end video cards will wane as time goes on (how many high end video game releases do you see for the PC each year? Less then 4-6 a year, if your lucky, due to consoles taking the gaming market over (due to thats where the money is at)....

Then add in that CPU's are starting to hit major brickwalls in the speed deptartment, forcing CPU makers to goto multicore units that dont add all that much more in performance...well you know how it goes..

[Technoid]

This REALLY pisses me off, this means the consumer might lose the ability to mix and match AMD/Intel and nVidia/ATI. And who knows what this will mean for the console world in a few years when the NEXT gens come out - do you think AMD would let the consoles use an ATI card if they are using an IBM cpu? Then we will see Intel buy nVidia, and everything will be less and less customizable, and we will all end up with pre-built machines. Then eventually either Intel or AMD will outright win, there will be a total monopoly, and then Microshaft will buy out the winner, buy out the country, and then the world. Bill Gates will reassume power and become the ruler of the galaxy. Physical activity will drop to an alltime low as he forces people to only play computer based games, the people will end up becoming weak and unhealthy and will be totally unable to repel an invading alien force who will then wipe out our species.
AMD buying ATI will bring about the end of the world.

LOL

[Fluff]

Is this the start of general purpose PC redux?