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Andrew 'Talon' Wilson :: 08:49 AM @ July 24th, 2006 :: General Gaming
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( READ ATTACHED PRESS RELEASE ) Confirming speculation over the last few weeks, AMD and ATI jointly issued word today announcing that the two will be merging into one company. The transaction, valued at $5.4 billion, has AMD acquiring ATI. Avoiding additional commentary, below are a few choice snippets.
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."

Under the terms of the transaction, AMD will acquire all outstanding common shares of ATI for $4.2 billion in cash and 57 million shares of AMD common stock. Read more by clicking the link above.

Latest Similar Story: Electronic Arts Makes 600 Jobs Redundant (10/30/08)

#1 - nemarsde - 07/24/06 @ 09:39 AM EST
Whoa! This is major! AMD/ATI systems are surely going to become the new de facto gaming platform after this.
#2 - GNS Jim - 07/24/06 @ 10:22 AM EST
I don't see how really bearing in mind that a Core 2 E6600 betters an X2-5000 for a similar price, it's no longer really the case that AMD has a price/performance advantage. Perhaps the only thing I see in AMDs favour is that there are more mature 'gaming' motherboards available for their CPUs at hte moment if you're looking for SLI solutions.
#3 - nemarsde - 07/24/06 @ 10:44 AM EST
There's also public perception though. We'll have to see what AMD/ATI do with this new company, but joint development of a brand of unified CPUs, mobos and graphics cards could be marketed very effectively.
#4 - Vega - 07/24/06 @ 11:00 AM EST
wow. this is a very major aquisition
#5 - LostToys - 07/24/06 @ 12:27 PM EST
And for months ATI and AMD were saying a merger was not going to happen. LIES!
#6 - Reflex - 07/24/06 @ 01:14 PM EST
Jim - Intel's platform is a major bottleneck for their Core architecture, as it scales in terms of CPU cores and Mhz it is going to increasingly get throttled with diminishing returns. The Core launch was a stopgap measure while they work on a true next-gen solution. THe real battle comes in about two years when Core's successor goes up against the K9 architecture from AMD...
#7 - sweetjimmy - 07/24/06 @ 02:38 PM EST
amd takes ati?
10-4.. off to have an AOK BLT ASAP.
#8 - Megahurtz - 07/25/06 @ 02:17 AM EST
I wish they would start seriously bumping up the MHz of a single core rather than just adding more cores onto the chip.
#9 - Arioch - 07/25/06 @ 06:19 AM EST
I have been in the AMD camp for about 5 years now but Intel's new chip looks fantastic.
#10 - BiomeXhanoid - 07/25/06 @ 01:35 PM EST
Conroe kills Am2, even with the 9xx architecture, epsecially with the new Nb controller. Short term, AMD was already going to be hammered by intel... and as for ATI, graphics card have maybe 4 or 5 more meaningful generations before they're obsolete versus integrated multicore IGPs. AMD needed ATI to surive for more than 6-8 years down the road. Intel was ultra slow to react, but when they finally let their Isreali design team loose, the results speak for themselves. The only real loser is NVidia... Their arrogance is going to cost them big time... because Intel has been working on their own set of DirextX 10 and beyond-game-worthy chips for a while.
#11 - LostToys - 07/25/06 @ 02:33 PM EST
And we all know how well designed Intel graphics cards have been in the past ... ....
#12 - Tre-ful Dead - 07/25/06 @ 05:10 PM EST
Megahurtz, it was my understanding that with the current chips bumping the ghz up more was not getting the numbers up as high for performance as more cores and other features aside from raw ghz was.
#13 - BiomeXhanoid - 07/25/06 @ 07:49 PM EST
11: that was a sure bet until the uberkind Israeli team got turned on Intel's IGC project... and has been given pretty much carte blanch over a three year roadmap. unlike AMD they do have the engineers, and they are realizing that gaming isn't a flash in the pan... Let's be honest. AMD had no way to keep up... until now.
#14 - LostToys - 07/25/06 @ 09:22 PM EST
AMD never competed in the graphics arena, and it was Intel's strong arm tactics which ketp AMD away from outlets which ended up being Intel's savior (see: Dell and sever markets for examples).

Intel became the defacto standard for on board graphics because they bundled it with every mainboard they made.

I will believe Intel has made a good video chipset when I see it. Otherwise, they are nothing more than bundled pieces of shit that are only there to make PCs cheaper to manufacture
#15 - BiomeXhanoid - 07/25/06 @ 10:56 PM EST
hahahahah... even WITH gaming being owned by AMD they are nowhere NEAR being a threat to Intel. Period. You're thinking short term. ATI and AMD aren't. Graphics cards are dying. It's not supposition, it's fact. Crusoe owns Am2, even with the halfmash hybrid motherboards. This has shit to with graphics right now. It's about 6-8 years from now. AMD has been winging on a prayer and angel farts, even with the gaming market virtually locked in. They need an edge, and they need engineers. Engineers who care about quality over throughput (unlike Nvidia)

Even with the inroads they've made, AMD's profits are crap, and they had to borrow 2.5 billion to make this deal work, not even counting the stock conversion.

"I will believe"

Try believing this. Intel was slow to turn around.... but they now have a product that destroys AM2, hands down. If you don't think the resources they have can be turned into graphics or some other ancillary platform, you're saimply covering your eyes to the truth.

Intel as enough money to lose profits for 10-15 years straight and remain viable. AMD doesn't.

Last Edited on 07/25/06 @ 10:58 PM EST
#16 - Phobia - 07/26/06 @ 12:26 AM EST
^I always question anyone who states something as fact before it's even out to the mass market.

sorry too many bullshit PRs for me to believe anything without seeing it firsthand.
#17 - BiomeXhanoid - 07/26/06 @ 02:24 PM EST
There are enough working samples of Core Duo to make it a fact, especially after the recent show. Question all you like.
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