AMD buys ATI !!! - Team-BHP

jkdas · 27th July 2006, 13:38

Utterly shocking news today from the world of hardware manufacturing, with word that AMD, Intel's greatest rival, has spent some $5.4 billion to purchase graphics card maker ATI. Rumors began to surface about a possible deal as early as May that AMD was looking to absorb ATI in order to buttress itself against its long-standing feud with Intel....

http://www.gizmodo.com/gadgets/hardw...azy-189382.php

ajmat · 27th July 2006, 16:54

Technically, it is a brilliant strategy

Financially, it could be a disaster since they paid cash

considering their return on capital is pretty disappointing and they are in the middle of a price war + intel is slapping some good products on the market - it is going to be a tough gamble

Good luck to them!

DRC · 27th July 2006, 17:01

It could be financially good too as INtel is trying to shed wieght these day. Hope you heard the news the Intel sold its IXP wing to Marvel.

Do I see the emerge of a new giant?

rsjaurr · 27th July 2006, 17:10

Financial experts will continue to debate its fallouts but to an end-user,this deal is very interestting coz ATI's rival nVidia was more popular chip on AMD compatible motherboards and argueably the better combination than say intel with ATI or AMD with ATI.

As AMD was never a big player,it will be difficult for them as ajmat pointed out.

naveendhyani · 27th July 2006, 17:24

can only wish AMD good luck. have used AMD systems for over 6 years & man they rock.

ajmat · 27th July 2006, 18:42

Quote:

Originally Posted by DRC

It could be financially good too as INtel is trying to shed wieght these day. Hope you heard the news the Intel sold its IXP wing to Marvel.

Do I see the emerge of a new giant?

My personal opinion is that Intel did get a shock in seeing AMD grow so fast but they are really trying to tone up before they are really caught napping. AMD have snookered them in a few segments. When you have 80% + market share, it is easy to be caught napping and be smug but good competition helps.

Look at VW in China, 80% market share down to 40%, they belatedly realised that they should bring in new models

moralfibre · 27th July 2006, 19:35

Now see this:

http://economictimes.indiatimes.com/...ow/1808243.cms

devarshi84 · 27th July 2006, 21:19

ok here are some financial facts.

AMD has paid a cash amount around 3-4 billion$
rest is in shares.
For paying cash, AMD took a loan amount of around 2.5 billion from Morgan Stanley.

AMD has gained a market share of around 22% recently, but fell short of the last forecast after rumours of AMD turionX2 note performing upto expectations and the news of merom coming out.

Intel has lost 57% earnings in the last quarter after cutting prices on all cpu's and increasing the spend on advertising.

rsjaurr · 28th July 2006, 09:54

Quote:

Originally Posted by moralfibre

Now see this:

http://economictimes.indiatimes.com/...ow/1808243.cms

wow!!!!
Good time for upgrading ur computers..

moralfibre · 28th July 2006, 10:13

Quote:

Originally Posted by rsjaurr

wow!!!!
Good time for upgrading ur computers..

Yeah absolutely and its not like one of those Upto 50% Off sales. This is FLAT 50%

devarshi84 · 28th July 2006, 13:18

epxect more price cuts on the release of core2duo mobile cpu's for mobile counterparts.

27th July 2006, 13:38	#1 (permalink)
jkdas Senior - BHPian Join Date: Sep 2005 Location: Thiruvananthapuram Posts: 5,304 View My Garage	AMD buys ATI !!! Utterly shocking news today from the world of hardware manufacturing, with word that AMD, Intel's greatest rival, has spent some $5.4 billion to purchase graphics card maker ATI. Rumors began to surface about a possible deal as early as May that AMD was looking to absorb ATI in order to buttress itself against its long-standing feud with Intel.... http://www.gizmodo.com/gadgets/hardw...azy-189382.php __________________ "She may not look like much, but she's got it where it counts, kid."

27th July 2006, 16:54	#2 (permalink)
ajmat Team-BHP Moderator Join Date: Feb 2004 Location: Bangalore Posts: 5,220 View My Garage	Technically, it is a brilliant strategy Financially, it could be a disaster since they paid cash considering their return on capital is pretty disappointing and they are in the middle of a price war + intel is slapping some good products on the market - it is going to be a tough gamble Good luck to them! __________________ I love the whoosh, but i miss the bellowing

27th July 2006, 17:01	#3 (permalink)
DRC BHPian Join Date: Dec 2004 Location: Bangalore Posts: 705 View My Garage	It could be financially good too as INtel is trying to shed wieght these day. Hope you heard the news the Intel sold its IXP wing to Marvel. Do I see the emerge of a new giant? __________________ _____________________ Stand on your head, upside down.. The world does not look any different, but you sure will look different!

27th July 2006, 17:10	#4 (permalink)
rsjaurr BHPian Join Date: Sep 2005 Location: Batala Posts: 685	Financial experts will continue to debate its fallouts but to an end-user,this deal is very interestting coz ATI's rival nVidia was more popular chip on AMD compatible motherboards and argueably the better combination than say intel with ATI or AMD with ATI. As AMD was never a big player,it will be difficult for them as ajmat pointed out. Last edited by rsjaurr : 27th July 2006 at 17:12.

27th July 2006, 19:35	#7 (permalink)
moralfibre Senior - BHPian Join Date: Dec 2004 Location: Back to Pune :-) Posts: 3,165 View My Garage	Now see this: http://economictimes.indiatimes.com/...ow/1808243.cms __________________ Ask not what your country can do for you, think of a way you can make them do it!

27th July 2006, 17:24	#5 (permalink)
naveendhyani BHPian Join Date: Feb 2006 Location: Melbourne Posts: 542	can only wish AMD good luck. have used AMD systems for over 6 years & man they rock.

27th July 2006, 21:19	#8 (permalink)
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad Posts: 2,948 View My Garage	ok here are some financial facts. AMD has paid a cash amount around 3-4 billion$ rest is in shares. For paying cash, AMD took a loan amount of around 2.5 billion from Morgan Stanley. AMD has gained a market share of around 22% recently, but fell short of the last forecast after rumours of AMD turionX2 note performing upto expectations and the news of merom coming out. Intel has lost 57% earnings in the last quarter after cutting prices on all cpu's and increasing the spend on advertising. __________________ boyracer.blogspot.com

28th July 2006, 13:18	#11 (permalink)
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad Posts: 2,948 View My Garage	epxect more price cuts on the release of core2duo mobile cpu's for mobile counterparts. __________________ boyracer.blogspot.com

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