Its official....AMD has bought ATI

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defiant007

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

NEW YORK -- July 24, 2006 --AMD (NYSE: AMD) and ATI (TSX: ATY, NASDAQ: ATYT) today announced plans to join forces in a transaction valued at approximately $5.4 billion. The combination will create a processing powerhouse by bringing AMD’s technology leadership in microprocessors together with ATI’s strengths in graphics, chipsets and consumer electronics. The result: A new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly-growing consumer electronics market. Combining technologies, people, and complementary strengths, AMD plans to deliver in 2007 customer-centric platforms for the benefit of customers who want to collaborate in the development of differentiated solutions.

AMD’s acquisition of ATI will position the new company to deliver innovations that fulfill the increasing demand for more integrated solutions in key market segments while also continuing to develop “best-of-breed” discrete products that empower customers to choose the combination of technologies that best serves their needs. In 2008 and beyond, AMD aims to move beyond current technological configurations to transform processing technologies, with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance. Thus, the combined company intends to empower its customers to create their own unique products and solutions within an open-innovation ecosystem free from artificial barriers to customer success.

“ATI shares our passion and complements our strengths: technology leadership and customer centric innovation,” said AMD Chairman and CEO Hector Ruiz. “Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them.”

“This combination means accelerated growth for ATI, and broader horizons for our employees,” said Dave Orton, President and CEO of ATI. “All of our product lines will benefit. Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets.”

“Windows Vista will deliver incredible advances in the user experience as a result of advancements in graphics integration and performance,” said Jim Allchin, Co-President of Microsoft’s Platforms & Services Division. “We’re excited by the potential of what AMD and ATI can deliver together to enhance the Windows Vista experience for our customers even further.”

Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of $4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21, 2006. All outstanding options and RSUs of ATI will be assumed. Based upon the closing price of AMD common stock on July 21, 2006 of $18.26 a share, the consideration for each outstanding share of ATI common stock would be $20.47, comprised of $16.40 of cash and 0.2229 shares of AMD common stock.

AMD anticipates it will finance the cash portion of the transaction with a combination of cash and new debt. AMD has obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. which, together with combined existing cash, cash equivalents, and short term investments balances of approximately $3.0 billion, provides full funding for the transaction.

ATI has received an opinion from its financial advisors that the transaction from a financial point of view is fair to its shareholders. The transaction was unanimously approved by the board of directors of each company. The transaction is subject to ATI shareholder approval, Canadian court supervision of a Plan of Arrangement, and other regulatory approvals including merger notification filings in the United States, Canada and other jurisdictions, as well as customary closing conditions. In the event that the transaction does not close, ATI has agreed to pay AMD a termination fee of $162.0 million under circumstances specified in the acquisition agreement. The transaction is expected to be completed in the fourth quarter of 2006.
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I fear that the future does not bode well for the competitiveness of the GPU market :(
 
Now we just need Wal-Mart to combine with Nvidia/Intel for world domination.

AMD made Intel chipsets?? i never knew that.
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I think he meant the ATI chipsets that AMD now owns with their taking over?
 
DemoMode said:
INQ... LMAO..

AMD made Intel chipsets?? i never knew that.
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They arent saying AMD made intel chipsets, but it has acquired ATI which does have a license and has produced intel chipsets
 
I really dont know what to say about thsi.
In a way I like the idea from the superficial stand point of AMD and Ati being my two favorite (not blind Fan Boi Fav just slight prefrance) Tech Companies. But Thats about it. What does AMD want to do with them further than using them for chipsets in order to sell Dell and the others the full package. Will ATi continue the path of the High End or will that fall to the back burner? In such a case Nvidia would be unchallenged in terms of the highend. Allthough their market share may fall lower if AMD Decides to create an ATi Branded Mother Board for Enthusiasts which I doubt.
Ugh Help me digest this people.
 
The real question now is whether it will be called ATD or AMI.
But seriously, Invidia will be a much better name than nintel.
 
defiant007 said:
the Empire Strikes Back......bwahahahaha

Sorry, couldnt resist
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Nothing to be sorry about...it's true ;)
The Blue Empire has awoken(Conroe), is ramping up the speed(quad-core) and they mean buisnees(pulling ATI's bus licence)..and I'll bet that is not the last "strike" we will see in the future...

Terra...
 
{NG}Fidel said:
I really dont know what to say about thsi.
In a way I like the idea from the superficial stand point of AMD and Ati being my two favorite (not blind Fan Boi Fav just slight prefrance) Tech Companies. But Thats about it. What does AMD want to do with them further than using them for chipsets in order to sell Dell and the others the full package. Will ATi continue the path of the High End or will that fall to the back burner? In such a case Nvidia would be unchallenged in terms of the highend. Allthough their market share may fall lower if AMD Decides to create an ATi Branded Mother Board for Enthusiasts which I doubt.
Ugh Help me digest this people.
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Nobody know, but since there are sold more CPU's than GPU's one could fear that the GPU buisness would get 2. seat...and that would really suck to us consumers...higher prices, slower tech race...not good...

Terra - But we can hope that they won''t let that happen...
 
i fricking knew this was gonna happen. hopefully the will help ati out in the long run.
 
Question though, since AMD/Intel have some technology cross licencing agreements in place already i wonder if them not renewing ATIs bus licence really ammounts to much.

I don't think the terms of their agreements would bar them from making an Intel compatable motherboard. Although i think they would be focusing on producing AMD boards from this point forward anyways.
 
I honestly think not much will come of this. AMD finally gets a chipset they can label as their own, and they get a decent onboard video controller. I highly doubt any more will come of this.
 
Adionik said:
Now we just need Wal-Mart to combine with Nvidia/Intel for world domination.

I think he meant the ATI chipsets that AMD now owns with their taking over?
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LoL, even Intel is no match for the world domination of Walmart. Personally, I'm exicted by this merger. I've viewed Intel as the evil empire for years now. Especially after reading statements from the ex Ceo of Compaq stating that dealing with Intel is the equivalent of working with a loaded gun pointed at your head.
 
InorganicMatter said:
I honestly think not much will come of this. AMD finally gets a chipset they can label as their own, and they get a decent onboard video controller. I highly doubt any more will come of this.
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Yeah I tend to agree with you. Except I'll take it a step further and say I think the possibilities of high performance CPU/Chipset/GPU synergy is exciting. Having high end GPUs being developed under the same roof as AMD CPU's might make for some exciting innovations.
However, I don't think this is the beginning of the end as Rahul Sood seems to think :p
 
When the gestapo come to my door I'll be spared cause I'm running an Athlon XP+ and a X800 XT. Muhahaha!
 
I think this leaves Intel and nVidia with.......

♫♫ Hungry Eyes ♫♫
 
hmmm.. could this possibly mean DUAL CORE GPUs? I mean, GPUs are now just as needed as CPU's and if you could replce the current 550-750Mhz gpu with an 2ghz processor?

Also with the potential for dual core gpu's THAT would instantly mean PPU on board.

I hope so atleast.
 
jebo_4jc said:
Yeah I tend to agree with you. Except I'll take it a step further and say I think the possibilities of high performance CPU/Chipset/GPU synergy is exciting. Having high end GPUs being developed under the same roof as AMD CPU's might make for some exciting innovations.
However, I don't think this is the beginning of the end as Rahul Sood seems to think :p
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What are you talking about? Are we reading the same blog????
 
wickedld9 said:
What are you talking about? Are we reading the same blog????
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Probably....I was referring to his exuberant optimism:
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.
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I'm not saying I disagree with what he's saying....I'm just not quite as 100% fired up about it as he is :)
 
Wich0 said:
Does this mean the END for the Nvidia NFORCE AMD chipset?
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That is a big question amoung several.

1) Will AMD not support/encourage non-ATI chipsets and GPU solutions?

2) Will Intel now support nVidia technology such as SLI?

3) Will Intel and/or nVidia try to merge? Obviously both Intel and nVidia are threathened by this merger, and will take some action.

4) Will the AMD and ATI names stay or will all CPU's and GPU's be labled under the AMD or whatever name they end up calling the combined company?

This is probably this bigggest tech merger, at least in hardware that effects consumers since HP/Compaq, and its implications are far more reaching. It going to take time to figure out if this is good or bad thing for consumers.
 
I think this is fantastic news!!!111 and a big ass bag of potato chips. :cool:

AMD - Gets a solid video embedded chip for the masses to compete with Intel's huge market.
AMD - Gets is very own talented Crossfire chipset group to build lighting fast and VERY overclockable motherboards. No need to rely on Nvidia or anyone else.

ATI - Gets a solid company with more talented resources in respects to low wattage and other technologies.
ATI - Gets its own Fab capacity instead of getting outside companies to do it.
ATI - Will be able to work with AMD on creating a complete powerhouse solution for the PC. That could include everything from placing the video processor on the cpu to multicore technologies.

This is a great day for both companies and in my opinion the AMD/ATI company with be the Enthusiast leader in the near future.

It's all about the bottleneck, and having both field of video and raw power working together can only mean great things.

Also I would'nt hold your breath about Nvidia getting bought out by Intel ...that isnt going to happen. The CEO of Nvidia is just to damn proud and secondly his company makes tons of cash on its own.
 
I just keep thinking "wouldn't that money have been better spent on fabs?"
 
Sorry guys and gals, but this is the equivalent of a bee-sting on a person, for Intel..

...though I'm not sure if Intel is allergic to bees... :rolleyes:
 
hmmm.. could this possibly mean DUAL CORE GPUs? I mean, GPUs are now just as needed as CPU's and if you could replce the current 550-750Mhz gpu with an 2ghz processor?
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GPU's are already dual cores, infact they are massively paralleled already, if you want a dual core GPU with out placing 2 GPU's one one pcb (liek the GX2's) all you have to do is double the pipeline architecture in it and you got a dual core'd GPU

So does this mean there'll be no RD600 Chipsets for Conroe in *Q3?
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ATi is still very much ATi, we know they got a liscence pulled from Intel as far as chipsets go, but how far did that liscence go we don't know, this doesn't mean ATi will never make another intel chipset again
 
|CR|Constantine said:
I think this is fantastic news!!!111 and a big ass bag of potato chips. :cool:

AMD - Gets a solid video embedded chip for the masses to compete with Intel's huge market.
AMD - Gets is very own talented Crossfire chipset group to build lighting fast and VERY overclockable motherboards. No need to rely on Nvidia or anyone else.

ATI - Gets a solid company with more talented resources in respects to low wattage and other technologies.
ATI - Gets its own Fab capacity instead of getting outside companies to do it.
ATI - Will be able to work with AMD on creating a complete powerhouse solution for the PC. That could include everything from placing the video processor on the cpu to multicore technologies.

This is a great day for both companies and in my opinion the AMD/ATI company with be the Enthusiast leader in the near future.

It's all about the bottleneck, and having both field of video and raw power working together can only mean great things.

Also I would'nt hold your breath about Nvidia getting bought out by Intel ...that isnt going to happen. The CEO of Nvidia is just to damn proud and secondly his company makes tons of cash on its own.
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precisely

the biggest plusses I see here is that AMD gets its own chipset, and onboard video for the mainstream consumer, and ATI gets its own FAB
 
Maybe AMD will force ati to make better drivers...

I can see this is a bad thing or a good thing... it all depends on the next few months to a few years...
 
[RIP]Zeus said:
Maybe AMD will force ati to make better drivers...

I can see this is a bad thing or a good thing... it all depends on the next few months to a few years...
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Since the whole thing won't be finalized until the end of this year I honestly don't even think we will notice any changes until 2007. And it may even take a year or two after that for things to really get swinging with the new combined company.

We'll see, in this case time will tell.
 
numbers said:
So does this mean there'll be no RD600 Chipsets for Conroe in *Q3? :eek:
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That's a great question. I sure hope so, because I was planning on buying one.
 
jebo_4jc said:
That's a great question. I sure hope so, because I was planning on buying one.
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Well if it is true that Intel pulled ATi's license then no there won't be a RD600 chipset that supports Conroe.
 
YESSSS!!!,

best video and cpu chip manufacturers joint forces ,

awesome , we wont need nforce chipsets anymore ,

woohooo,
 
Banko said:
Well if it is true that Intel pulled ATi's license then no there won't be a RD600 chipset that supports Conroe.
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That's not necessarily a true statement. If RD600 is already developed, it could be the last Intel chipset made by ATi. Intel pulling the bus license from ATi may only stop future chipset development. I would be sad about that....
 
I like AMD, but I am not a huge ATI fan...

However, ATI has some good tech, and maybe it can be brought together by AMD to make something nice that is not just marketed towards the young gamers.

I know AMD supports the linux and open source communities... hopefully this will lead to better support from their ATI branch with regards to open source, and the serious pro markets.

I want to see bad ass AMD workstations with a bad ass logic and graphics solution... and that has been nvidia's job lately. (unless you only play games)
 
Intel pulling the bus license from ATi may only stop future chipset development. I would be sad about that....
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who cares? if you want an intel platform intel chipsets have always been the best choice. Doesn't crossfire work on any chipset? (certainly single cards work on any chipset, intel isn't going to change the PCIe standard) nvidia would be on the same level as via in the intel world if it wasn't for people wanting to have SLI.

They probably pulled this bus liscense because it was redundent now... AMD has an IP sharing agreement with intel.
 
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