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AMD to Buy ATI

AMD to buy ATI for about $5.4 billion is an example of the flood of news reports this morning confirming rumors that Advanced Micro Devices is buying ATI Technologies. The About AMD & ATI Page on the ATI Website (thanks Mike Martinez) has a preliminary outline of where this will lead, and here's the announcement:

NEW YORK (Reuters) - Advanced Micro Devices Inc (NYSE:AMD - news), the No. 2 supplier of computer processors, said on Monday it would acquire graphics chip maker ATI Technologies Inc. for $5.4 billion in cash and stock to expand its product mix and grow market share as it battles Intel Corp. (Nasdaq:INTC - news).

Under terms of the deal, AMD will acquire all of the outstanding common shares of ATI (Nasdaq:ATYT - news) (Toronto:ATY.TO - news) for $4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21.

AMD said it would pay $20.47 for each ATI share. That marks a 24 percent premium over ATI's closing stock price of $16.56 on Nasdaq on Friday. The stock added another 7 percent to $17.68 in after-hours trading amid media reports of the expected deal.

The consideration for each outstanding share of ATI comprises $16.40 in cash and 0.2229 shares of AMD common stock, the companies said.

AMD, the No. 2 supplier of computer processors, said it expects to finance the cash portion of the transaction with a combination of cash and new debt.

AMD has obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding which, together with combined existing cash, cash equivalents, and short-term investment balances of about $3 billion, provides full funding for deal, it said.

ATI said it has agreed to a termination fee of $162 million. The deal is subject to the approval of ATI shareholders and regulators in the United States and Canada.

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56. Re: Why? Jul 24, 2006, 20:21 skyguy
 
AMD can't build a chipset worth a damn to save their corporate soul. Anybody remember the 761/762 and what a raging pile of crap that was?

Hey! That's the chipset in my main workstation!

I don't use it for gaming, but the performance otherwise has held up great over the last few years. Its an SMP 762 chipset running Linux, I have both PCI busses stuffed full of peripherals without any real performance problems.


 
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Previous Post Next Post Reply Quote Edit Delete Report
 
    Date Subject Author
  1. Jul 24, 09:09 Why? TangledThorns
  10. Jul 24, 10:24  Re: Why? Burrito of Peace
  24. Jul 24, 12:03   Re: Why? Tim
>> 56. Jul 24, 20:21   Re: Why? skyguy
  13. Jul 24, 10:47  I'll sum this up zipr
  2. Jul 24, 09:10 Unless... Dreagon
  7. Jul 24, 09:36  Re: Unless... cyxxon
  9. Jul 24, 10:09   Re: Unless... MMORPGHoD
  3. Jul 24, 09:12 No subject JaZeeL
  4. Jul 24, 09:17  Re: No subject Bill Borre
  16. Jul 24, 11:23  Re: No subject banddirector
  17. Jul 24, 11:29   Re: No subject MMORPGHoD
  18. Jul 24, 11:34    FoxConn amckern
  21. Jul 24, 11:47     Re: FoxConn Ulster
  23. Jul 24, 11:52      Re: FoxConn nin
  27. Jul 24, 12:35      Re: FoxConn theAntiELVIS
  29. Jul 24, 12:59      Re: FoxConn DrEvil
  30. Jul 24, 13:35       Re: FoxConn Grounded
  31. Jul 24, 13:45       Re: FoxConn Enahs
  32. Jul 24, 13:51       Re: FoxConn Duc
  34. Jul 24, 14:06        Re: FoxConn MMORPGHoD
  35. Jul 24, 14:14      Re: FoxConn Zathrus
  39. Jul 24, 15:49      Re: FoxConn Kxmode
  40. Jul 24, 15:58       Re: FoxConn nin
  60. Jul 24, 23:35      Re: FoxConn MacD
  61. Jul 25, 00:13       Re: FoxConn DrEvil
  22. Jul 24, 11:52     Re: FoxConn BIGtrouble77
  5. Jul 24, 09:22 Scary... Alamar
  6. Jul 24, 09:29  Re: Scary... Smoove
  8. Jul 24, 10:06 No subject A51Abductee
  14. Jul 24, 10:55  Re: No subject Killian
  11. Jul 24, 10:30 No subject DedEye
  12. Jul 24, 10:42 No subject dryden555
  15. Jul 24, 11:11 Re: Rseman
  19. Jul 24, 11:42 Isn't ATi larger than Nvidia? venomhed
  20. Jul 24, 11:45 No subject BubbleMage
  25. Jul 24, 12:05 No subject FREAKHEAD
  26. Jul 24, 12:21 No subject Slint
  28. Jul 24, 12:49 Wow. silentsammy
  33. Jul 24, 14:03 No subject xXBatmanXx
  36. Jul 24, 15:31 Next system DangerDog
  37. Jul 24, 15:36 Nvidia vs ATI venomhed
  41. Jul 24, 16:01  Re: Nvidia vs ATI Zathrus
  38. Jul 24, 15:37 Whose your DATI? Kxmode
  42. Jul 24, 16:19 What this means. m00t
  44. Jul 24, 16:32  Re: What this means. Zathrus
  48. Jul 24, 17:18   Re: What this means. m00t
  55. Jul 24, 19:48    Re: What this means. Zathrus
  43. Jul 24, 16:27 AMD slashes processor prices Kxmode
  45. Jul 24, 17:05 ... theyarecomingforyou
  50. Jul 24, 17:26  Re: ... m00t
  53. Jul 24, 17:41   Re: ... DrEvil
  46. Jul 24, 17:07 Re: What this means UnderLord
  49. Jul 24, 17:22  Re: What this means m00t
  47. Jul 24, 17:16 What else it means UnderLord
  51. Jul 24, 17:34 So obvious it shouldn't need explaining UnderLord
  52. Jul 24, 17:38  Re: So obvious it shouldn't need explain MachineMk2
  54. Jul 24, 18:09 No subject Dev
  57. Jul 24, 21:42 Credit where credit is due zee
  58. Jul 24, 21:56  Re: Credit where credit is due nin
  59. Jul 24, 22:03   Re: Credit where credit is due Zathrus


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