Competent / News / AMD set to announce deal to buy ATI



Right menu

Not logged in

Новое на сайте

Google Mind Melds With Trekkies

Resistance is futile. You will be compiled.

As part of the 40th anniversary of the legendary science fiction series Star Trek, Google has set up shop in Las Vegas at the 5th Annual Official Star Trek Convention for Trekkies looking to sharpen their programming knowledge.

The Google booth, which has a starship bridge motif, features Google programmers, engineers and product managers who can discuss a variety of APIs, including Google Earth KML, the Google AJAX Search API, Google Calendar's data API and the Google Gadgets API.

Microsoft Extends a Hand To Mozilla

It may be August, but they're having a snowball fight in Hell right about now.

The head of Microsoft's open source lab extended a very public offer to the Mozilla community to work to insure Mozilla software will run properly on Windows Vista.

Firefox 2.0: Mozilla's Tabs Overfloweth

For many Windows users, tabbed browsing is a key attraction for the Mozilla family of browsers. The ability to add multiple 'tabbed' views within one browser window is a feature that some users like to push to extremes.

Microsoft's current stable production version of Internet Explorer does not include tabs, though its next generation version 7 (currently at Beta 3) does.
So how many tabs can you fit in one window? No matter how many you can fit into Firefox 1.5.x, the next release of Firefox 2.0 Beta 2 will give you more.
Using a default configuration in Firefox 1.5.x, at a screen resolution of 1024x768, in tests performed by internetnews.com 34 tabs can be squeezed in before they start to get lost.
A user can add more than 34 tabs but in a default Firefox 1.5.x installation, those tabs will fall off the end of the tab bar and will not be very usable. Even at 34 tabs, the default tab width makes it difficult to figure out which tab is which.

Реклама

Статистика

Rambler's Top100
Technorati Profile

Cache-Control: max-age=3600, must-revalidate Date: Wed, 04 Feb 2009 01:05:15 GMT Expires: Wed, 04 Feb 2009 02:05:15 GMT Last-Modified: Mon, 24 Jul 2006 10:15:34 GMT

AMD set to announce deal to buy ATI

Monday 24 July 2006

Advanced Micro Devices Inc. is expected to announce this morning that it plans to buy Thornhill-based graphics chip maker ATI Technologies Inc.

Late last night, Sunnyvale, Calif.-based AMD said it will hold a press conference at 8 a.m. this morning to make a "significant corporate announcement."

Spokesperson Brenda Rarick would not confirm the substance of the announcement, but a source familiar with the matter said it concerns the acquisition of ATI.

AMD chairman and CEO Hector Ruiz and chief financial officer Bob Rivet will be making the announcement.

Rumours of a deal to buy ATI sent the Canadian company's shares up 5.57 per cent, or 99 cents, Friday to $18.77 on the Toronto Stock Exchange. The firm has a market value of about $4.76 billion (Canadian).

AMD shares fell $3.39 (U.S.), or 15.66 per cent Friday, to close at $18.26. AMD's market value is about $8.84 billion.

Reports have placed the price tag of the potential acquisition at about $5.5 billion (U.S.).

If that number is accurate, it is not a great premium to pay given the strategic rationale, said Jon Peddie, the head of California-based Jon Peddie Research.

"If it should happen, I think it's going to be astounding," he said from his home in California last night.

"If it were to happen, this expands AMD's product line so it has a broader line than Intel. It would challenge Intel on all fronts," he said, adding it would upset a lot of plans that various companies have in the works right now.

AMD is the No. 2 supplier of computer processors, and an acquisition of ATI would help it gain market share to battle its larger competitor, Intel Corp.

The deal would give AMD one of two major graphics chip makers, the other being Nvidia Corp., ATI's main rival. ATI also supplies chipsets — the cluster of secondary chips and interfaces that surround a computer's processor — for AMD and Intel products.

Since rumors of a deal first emerged in May, many industry analysts have voiced skepticism, saying it made little financial or strategic sense for AMD to buy ATI outright.

One concern is that the price would be too high for AMD, which already plans to spend $5 billion on capacity in the next few years, even as it fights a bruising price war with Intel.

"It would be a very dilutive acquisition and they don't want to spend their cash because they are going to need that for capital expenditures going forward," said one analyst at a U.S. research firm, who declined to be identified.

Graphics chips are also less profitable than PC processors. Gross margins in the business are about 45 per cent, compared to 55 per cent for main processors.

A tie-up with ATI could raise concerns that AMD would shun Nvidia, and potentially clash with a new AMD initiative called "Torrenza" that will open up its technology so other chipmakers can make their products work better with it.

Some other analysts were more skeptical about the transaction's benefits, with one going so far as to call it a "catastrophe."

ATI declined comment on Friday.

The company has been playing catch-up with Nvidia in PC graphics chips after missing an upgrade cycle last year for the most profitable semiconductors.

Its shares jumped 8 per cent at the end of May after an RBC Capital Markets analyst first reported rumours of a takeover by AMD.

With files from Reuters

Comments

You are not allowed to create comments.