amd buys ati for $5.4b

July 24, 2006

The rumors I discussed a couple of days ago have come to fruition, as Bloomberg reports that semiconductor manufacturer AMD will buy GPU maker ATI for $5.4b in cash and stock. ATI shares are up nearly 18% as of this writing. AMD apparently hopes that the deal will allow it to develop a platform similar to Intel’s Centrino which would increase its attractiveness to computer vendors like Dell Corp. How exciting!

–D. S. W.


2 Responses to “amd buys ati for $5.4b”

  1. Jonathan Coveney said


  2. […] Yes, you read that right. Graphics maker Nvidia’s stock price soared 8 percent today amid on a report by Reuters that chip giant Intel was preparing a buyout of the company, the culmination of months of rumors that began with Intel rival AMD’s purchase of Nvidia competitor ATI last July. An analyst from brokerage firm vFinance Investments was even so bold as to suggest that the deal would go down “tonight.” As in, right now. I can just imagine them signing the blood contract, the chief executives swearing their undying loyalty to one another and agreeing to swap wives sometime.But seriously, this is all very, very specious, as the article notes that Intel has no clear incentive for this move considering that it already has a brisk business making and selling its own integrated graphics chipsets in Intel-branded motherboards. The price would also be astronomical compared to the AMD-ATI deal (Nvidia has a market cap of $10bn) Yowzers! So, don’t be too disappointed if you wake up tomorrow and find that the wedding has been cancelled, or that it never was going to happen in the first place. It will all be fine. I promise. […]

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