AMD close to buying ATI Thread

Gamespot.com

As much as analysts aren't always right, they aren't always wrong, either. In May, RBC Capital Markets analysts said microprocessor manufacturer AMD was considering an acquisition of graphics-card maker ATI Technologies.

Today, Reuters is reporting that AMD is close to a deal that would see it acquire ATI for $5.5 billion, citing "a source familiar with the situation" for the info. The source said a deal could be announced as soon as Monday.

In suggesting the purchase in May, the RBC analysts noted that the idea of Intel or AMD purchasing a graphics-chip maker has been batted around for a while, and pointed out AMD's stated intent to increase its capacity in the coming years. As for ATI being chosen for acquisition instead of a rival company like Nvidia, the pair called ATI "a rare buy in the semiconductor space right now."

Could this be just what ATI needs to finally put some distance between it and NVIDA?

Doubt it. AMD's stocks have gone down several percentage points, even with this looming over everything. ATI would have been better served as an independent company with its own individual directions. Now under a parent company, it'll be restricted to AMD's wishes. In my opinion, it would've been much better if there was an AMD/NVidia package (if it had to come to pass) since that's like the gaming 1-2 punch to me, but still, something like this does seem troublesome for the computer industry.

I hope that they do it. In fact, I would prefer it and get a mobo-processor-graphics card combo from AMD rather than getting all of them separately.

But it's debatable if they go through with it or not, as it's a 5.5 billion dollar acquisition fee.

AMD has already posted the money, as they have a lot more where that came from due to the fact that they have a huge hardcore gamer following (for good reason). It's just up to all of the legalities.

With Intel finishing up the revamp of their line by the end of this year, start of next year, I really think it could be a bad idea for AMD.

ShortCutMan wrote: With Intel finishing up the revamp of their line by the end of this year, start of next year, I really think it could be a bad idea for AMD.

Im with u on this ati have managed just fine competing again nvida alone
i belive with amd in there there compeditivness will drop like a stone...

although same could be said for amd.... intresting

Edited by: TKAzA

don't forget ATI works with Nintendo & Microsoft for consoles too, so this would get AMD in to the console market big time. If Microsoft liked ATI's GPU for the 360 they could ask the parent company, AMD, to make the CPU's. They'd get a discount. Nintendo could always go the same way too in their next console.

i don't see AMD doing anything stupid with ATI. They've done wonders in the CPU field. I'd except we'd see better GPU's from ATI then. Plus, it's not like Nvidia does GPU's only so perhaps ATI could use the increase in products as well.

Well at least now I'll stop getting them mixed up all the time. Never again will I utter the words "AMD GeForce X800XL"

As opposed to "ATI Geforce" 0_o?

Radeon 7950?

Amd.com

So it's really happening. This could be an interesting year.

well this is no good for linux users anyway

One possible outcome here, I think, is the introduction of motherboards with integrated GPU's, which could, potentially, breathe some life back into PC games.

Um, that has already happened before? o_O

Yeah, and it sucks. Maybe he means *good* GPUs.

methulah wrote: Yeah, and it sucks.

Gee, somebody's talking about my computer.

methulah wrote: Yeah, and it sucks. Maybe he means *good* GPUs.

Yeah, he means good GPU's.

Maybe that actually means integrated GPUs in the processors themselves. Two for one special. Could curve a lot of costs, and see AMD pop up in a lot more default systems instead of Intel.

/me looks at Del Inpsironl E1705