A.M.D. to Acquire ATI Technologies
Quote:
The wait is over, ATI and AMD have sealed the deal
The official AMD-ATI announcement is still three hours away (AMD sent the newswire out a few hours early for some reason), but we will be bringing you coverage live during the briefing. For those still in doubt, occasional DailyTech blogger and T-Break Editor-In-Chief Abbas Jaffar Ali was able to sneak an image from the conference already; and a picture is worth a thousand words.
AMD announced the deal is valued around $5.4B USD: $4.2B in cash and 57M shares of AMD common stock will be used to purchase the ATI in a takeover bid. AMD's press release also claims that the combined company would have had approximately $7.3B in sales over the last four quarters and more than 15,000 emploees.
The new company keep the AMD headquarters in Sunnyvale, California, and the previous ATI headquarters will act as a business hub for part of the company. ATI's previous CEO Dave Orton will act as executive vice president of the ATI division and report directly to Hector Ruiz and Dirk Meyer.
http://www.dailytech.com/article.aspx?newsid=3468
From AMD's website: AMD&ATI - A Processing Powerhouse!
http://www.amd.com/us-en/0,,3715_141...l?redir=goBG01
BEFORE:
-------------AMD--------------------------Intel-------------
http://img161.imageshack.us/img161/6...sbeforeak6.jpghttp://img472.imageshack.us/img472/9098/intelhasqt7.jpg
AFTER:
-------------AMD--------------------------Intel-------------
http://img156.imageshack.us/img156/1...asafterik5.jpghttp://img472.imageshack.us/img472/9098/intelhasqt7.jpg
Not to mention, AMD Live will now be more viable option compared to Intel VIIV, now that AMD has ATI.
http://www.mytech.it/media/028001009863.jpg ------> http://img133.imageshack.us/img133/3...amdlivehw3.jpg
http://www.amdlive.com/en-gb/
Not Bad.
A.M.D. to Acquire ATI Technologies
http://www.nytimes.com/2006/07/24/te...rssnyt&emc=rss
Quote:
In a transaction that will reshape the semiconductor industry, Advanced Micro Devices Inc. announced today that it would buy ATI Technologies Inc. for $5.4 billion in cash and stock.
The deal comes as the semiconductor industry is becoming the focus of intense investor interest. Later this week, Philips Electronics plans to field final bids worth more than $10 billion apiece for its semiconductor division from three consortiums of private equity investors, people involved in that auction said. Philips had been considering an initial public offering for the unit.
A.M.D.’s deal for ATI, worth $4.2 billion in cash and $1.2 billion in stock, will expand A.M.D.’s business into graphic chipsets used in high-end PC’s for playing video games and in workstations used in design work or to create video games and movie animation as well as chipsets for cellphones and handheld devices.
A chipset connects a computer system’s processor to its memory and other parts, facilitating the flow of data among components.
“The deal puts A.M.D. on more equal footing with Intel," said Samir Bhavnani, director of research at Current Analysis, a market research firm in San Diego. “It completes the puzzle for A.M.D.”
He said the deal was important because it took A.M.D. beyond PC’s and gave it greater strength for the cellphone and handheld markets.
The deal is not without challenges. While both companies have reported strong earnings growth over the past year, overall growth of PC sales is slowing, particularly in the high end of the market, where the graphics chips are important components.
The slowdown also means the price competition with Intel for the core processors at the low end of the market has increased. Lower prices mean that A.M.D. makes less money per processor.
The ability to sell graphics chipsets along with a processor could help improve A.M.D.’s overall gross profit margins, which fell in the latest quarter to 56.8 percent from 58.5 percent in the prior quarter.
ATI is a major player in a number of promising technologies that will grow as the electronics industry shifts away from the dominance of PC’s to new forms of television, enhanced set-top boxes as well as handheld videoplayers. For instance, ATI makes chips that enable integrated digital televisions, which get digital broadcast over the airwaves. The company also makes image processors that are used to display video on cellphones or mobile handheld game machines.
In its third quarter, ended May 31, ATI reported that revenue from the consumer side of its business grew 120 percent year-over-year due to strength in the handhelds market. Shipments of chips for the digital television market more than doubled. By contrast, its revenue from chips used in PC’s increased only 8.5 percent from the year earlier quarter.
Philips Semiconductors was ranked as the world’s eighth largest semiconductor maker in 2005 by iSuppli, a market research firm. With revenue of $5.7 billion, it claimed 2.4 percent of the overall semiconductor market. A.M.D. was ranked slightly behind it. ATI was ranked as No. 25 with almost $2 billion in revenue and a market share of 0.8 percent, iSuppli said.
Damon Darlin contributed reporting from San Francisco for this article.
uh oh
what does this mean for us?!
Threads merged - bachus_anonym
