AMD acquires ATI

Chip manufacturer picks up graphics-card maker for $5.4 billion in cash and shares; company promises "more integrated solutions."

On Friday, Reuters reported a rumored deal that would see microprocessor manufacturer AMD acquire graphics-card maker ATI was close to complete. Today, it became official.

Sunnyvale, California-based AMD today announced that it has come to an agreement to purchase ATI (headquartered in Markham, Ontario, Canada) in a deal worth roughly $5.4 billion in cash and shares. Each company's board of directors voted for the deal unanimously; now the acquisition must meet the approval of ATI shareholders and US and Canadian regulatory bodies before it can be finalized.

AMD has said that ATI will continue to make the specialized, high-end graphics cards it was known for, but that it will also work more on integrated graphics solutions. The company expects earnings per share to increase slightly next year, and "meaningfully" in 2008. Also by 2008, AMD anticipates its operating expenses to be down by about $75 million.

An ATI representative told GameSpot that any layoffs due to the merger would likely be minimal. "It's too early to say, but for the most part there's no overlap within the company," the representative said. ATI currently employs 4,200 people, and the postmerger AMD is expected to employ approximately 14,900.

As of press time, shares of AMD were off a little more than 4 percent from Friday's closing price, trading down $0.80 to $17.46. On the other hand, shares of ATI received a significant boost on the news, jumping more than 18 percent, up $3.03 to $19.59.

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196 comments
Rayzup
Rayzup

wow they actually picked up the canadian company finally the canadians r getting light!!! o well im a nvidia user go 7900series!

bulletsword
bulletsword

more work on integrated card, eh? Well, that means in like 2008 you'll be buying a computer with an integrated X1900 lol. I don't really care much and I also use both ATI and AMD.

n-phreak
n-phreak

i use Ati and AMD so.. good news for me =), i think...

3eye_ho
3eye_ho

there is a rule: big fish eats little fish... amd knows what are they doing, and these... 5mln$ WOW! this is not unexpected - before a year i thought ati and amd have contracts and nvidia works with intel!! just look the prices! ati and amd stays always on one side! and now.. amd is going to turn into the bigger fish than nvidia or intel.. its not THAT simple but... these are the things that everybody can see,right?

aligokalppeker
aligokalppeker

Great , Intel is scruwed..... Nvidia is a tricky company ,,, AMD , ATI and Microsoft.....Damn this is good

LouieV13
LouieV13

I personaly hate ATi but AMD is good too its just I prefer a Intel 3.2ghz over a AMD whatsamahoochi with HT. Nvidia + Intel FTW!!!

terminus
terminus

I was always a fan of nvidia in the beginning, but since the ati 9800pro, I have since been using ati cards, I own an amd64 3700 with nvidia 7900 gpu....it's a great pc, however, my p4 3ghz ati x800xt pe system is superior.......both sport 2gb ddr400 and 200gb sata hdd, and ofcourse asus deluxe mobo'z. I don't like this merger.....I don't think it's a good sign by ati......things can't be all gravy if there doing this, you shouldn't need more resources from another major company to compete with nvidia if all things were juicy.

sharingan87
sharingan87

00Rambol00: "Hey nice one for AMD and ATi ! Comon people AMD kicks intel's ass any day, i mean am not willin to pay frickin $999 for a Intel core 2, thats just playing stupid." Hey fanboy, get your facts right. A $400 Core 2 Duo is faster in ANYTHING (games, media, office) than a $800 FX-62. What do you have to say about that? Intel is the current price-performance leader and guess what? It's also the benchmarks leader. And sorry, to be so blunt, but any gamer who wants to buy a new processor now should avoid AMD. Why? Well for the same damn reason why we avoided the Pentium 4 and Pentium D processors for two years. Some of you fanboys have been going on and on with the "OMG QUAD-CORE AMD PWNS! INTEL SUX!" well know that the current quad-core solution that AMD are getting ready to release is based on K8, whereas Intel's quad-core solution, Kentsfield, is based on the Core architechture (literally two Conroes in one). Now, we already know of K8 and Core which architecture reigns supreme now, so get a grip and accept the truth.

FortuneC00kie
FortuneC00kie

I'm all for this idea. Plus I'm happy for the people at ATI. 5.4 BILLION is no small sum to anyone.

niko66
niko66

ATI and AMD rulz!!!!!

damien6977
damien6977

well good job amd, now, what to do about that intel core 2....hmmmmmm.......

BlackHawk4001
BlackHawk4001

I see huge positives with just as large negatives. Together, they cancel out. Consequently, I'm not sure how this combination will end up. Looking at the picture from a distance, I believe AMD (being the acquirer) could make this a large success depending on the decisions they make. On the other hand, one wrong move could put Intel (AMD 's leading competitor) so far ahead, recovery, may turn obsolete.

bildo2020
bildo2020

If only the aquired Nvidia....which would never happen lol!

RomanHastati
RomanHastati

Man everyone here is a bunch of newbs for one only idiots who know nothing about there cards will not get much performance our mess there own card up. As much as I know with any video card our any pc for that matter as long as you got good cooling and not overheating anything there really should be any major problems.

rhandentheman
rhandentheman

i read somewhere about integrating the gpu into the cpu, to make games, in a word, better. if they can pull that off, ill be willing to accept this merger. but as of right now, that leaves only Nvidia as the only independent gpu makers on the market, and with them ill stay. SLI makes life better.

rallykupo
rallykupo

"All true hardcore gamers know that AMD are gaming processors and ATI is the perfect match. AMD+ATI=Match made in heaven" QFT.

Zaidyn
Zaidyn

If "integrated graphics" means "more than 4MB of VRAM" then I'm all for it.

termxgamer
termxgamer

AMD cpu will burn up in less then a second without that fan constantly going. AMD will be toasted. Atleast with intel if ur fan goes u just wait a hour or more and its ok again. I have a Intel Pentium4 2.8ghz and a ATi 9550 video card with 256mb, and 2gigs of RAM. My games never played better then they do now. Wheni was on AMD it was all crappy and laggy graphics. Now its smooth with intel+ati :)

Our_VA
Our_VA

ATI ummm nice move.

nocoolnamejim
nocoolnamejim moderator

Bad thing in my mind. The competition between ATI and Nvidia was fantastic before, with each doing their absolute best to continually one-up the other in both price and performance. I'm not sure that will remain the case now.

Nasimul
Nasimul

good for both of them... lets what these two can give to the gamers..

mareaper
mareaper

I wonder how this will effect the relationship between nVidia and AMD since nVidia makes some of the best motherboard chipsets for AMD processors.

truplaya111
truplaya111

Woow finally. Ati = More bangs for your bucks AMD good CPUs but the new Core 2 Duo are better at games and cheaper. Come on AMD Get back up there.

Freakazoidian
Freakazoidian

I like AMD, but I'm more of a Nvidia guy myself.

jaefrmbk2k
jaefrmbk2k

I'm not sure waht this means just yet but i want extreme sports to merge with ice skating so we could have bungee ice capades

bigelf72
bigelf72

All true hardcore gamers know that AMD are gaming processors and ATI is the perfect match. AMD+ATI=Match made in heaven

Genrihhh
Genrihhh

ATI+AMD Strange. I thought AMD+Nvidia, I guess not anymore. What next? Intel+Nvidia??

1stpersonshoot
1stpersonshoot

give me an amd nvidia deal and im cool this is not beans with me man but what the hell ever, what does my opinion count for anyway?

The_Magic_Taco
The_Magic_Taco

The bundles that AMD+ATI will offer should help people who are looking for a good deal on a nice computer. On the other hand, I don't think it will affect PC enthusiasts that much. I just go after what I think is the best product. Nvidia will still be compatible with AMD and ATI with Intel.

Ferntp
Ferntp

I don't like this monopoly

rkolhous
rkolhous

I want Pepsi to merge with Coke. Then we can have Pepsi Classic and Mountain Sprite...

Phazevariance
Phazevariance

Come on DX10 cards... taking too long... hurry up... can't... wait... much... longer... ... ...

hks_aznracerboi
hks_aznracerboi

Intel is left in the dark wondering how they will cope with research and development funding, now that the two companies have combined resources. A sharing of Idea's to intergrate cpu and gpu intergration, while ATI will just be a division of AMD and still have its core business practics like desktop GPU, Chipset, mobile and mobile chipset, platform chips, tv set top box chips. They will be the just be industry leader and Itel will be playing catch up by trying to take share of the GPU/chipset market. They just won't be able to compete with the new AMD now.

faridmon
faridmon

AMD and ATI are the best, now lets see they crashing Intel and Nvidea, and now i need to buy a high end computer, maybe after 5 years.

RanXer0x
RanXer0x

Oh my god. Perhaps now the $500-1k dollar systems of the world, with integrated graphics, just might run games that have been out for a few years. I hate intel for good reason.

cyborg100000
cyborg100000

I don't like intel very much, their intel 4 processor couldn't play CoD 2 but the AMD 64 3200 could. and all they do is advertise non stop. Oh oh intel pentium 4 runs great on this and runs great on that buy it now BUY IT!!! They are expensive....

blooddemon666
blooddemon666

I'm going to have to chose right now between a rock and a hard place. Wether to keep my amd processor and switch over to an ati gfx card, or keep my nvidia gfx and switch to an intel.

dalym3n
dalym3n

come on... do you really believe that in intel based PC the ATI card wont work perfect? do you believe that in a AMD based PC an nVidia wont work perfect? they will continue wanting to sell as many as they can... they will be happy to sell amd processors to nVidia fans and they will enjoy selling ATIs cards to intel processors fans.... dont think that this will change... what it will change is that if they where great (no matter what you think) separated.... together they will rock the business... intel and nvidia warent in my good graces.... and now they wont have the weapons to win me back... no sr.

igl
igl

i always liked amd-nvidia systems. ati sux :/ rly

jazilla
jazilla

YES!!! The globalization of business has once again visited the gaming industry. Finally one step closer to squeezing the life out of independent, creative smaller companies.

UmaSama
UmaSama

Actually this merging sucks, because it will mean that from now on ATI graphic cards will work waaayyyy better with AMD based machines than Intel based ones. I mean come on it's quite obvious that AMD won't mind in making their GPUs work fine with the competition hardware, that's just plain stupid, nobody wants to give their competition the chance of earning a dime with your products, so the thing will be like "if you want to squeeze the juice out of your ATI GPU you MUST have an AMD based PC". Either way I don't care 'cause I own an Intel micro, and a Nvidia Graphic card. And doktron, "WHAT DO YOU PEOPLE KNOW ABOUT BUSINESS MERGERS! DO ANY OF YOU EVEN HAVE AN MBA? DO YOU EVEN KNOW WHAT AN MBA IS?" I don't have an MBA, but I do have a Bachelor's Degree in Bussiness Management, so I kinda get this stuff.

Elvish_God
Elvish_God

[This message was deleted at the request of a moderator or administrator]

Vonheidger
Vonheidger

and the new company name will be ami???