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.
View : : :
42.
 
What this means.
Jul 24, 2006, 16:19
42.
What this means. Jul 24, 2006, 16:19
Jul 24, 2006, 16:19
 
AMD will have a top of the line graphics chip that supports Coherent Hyper-Transport out the gate.

You will no longer have to buy video cards for AMD systems, you will buy GPUs and plug them directly in to the motherboard. It will share system RAM with the processor.

Imagine buying a board with 4(or more) sockets. You start with some basic on-board video technology, nothing fancy. Initially you just have one CPU (dual-core, whatever). Later you realize you miss your favorite 3d games. You go out and buy an A(MD/TI) GPU and drop it in the cHT socket. Voila, instant 3D gaming. It would probably be cheaper, too. No PCB, no extra RAM (though expect the "standard" amount of RAM on systems go to up to 2GB or higher.). A few years later you find the system getting a bit sluggish from the added Vista requirements that came with the newest "Service Pack". Simply slot in another CPU and GPU to "double" your performance.

This is what this means.

Once it is out the door and proven with ex-ATI GPUs, Physics co-processors, advanced 3d audio chips, or whatever specialty processor you can think of that will take advantage of this would be only as difficult as dropping the chip in. It gets the benefit of living very close to main memory on a fast BUS, no card overhead.

Another advantage of this is that we can start moving towards smaller form-factors for mainboards and systems overall.

Later, GPUs will likely be moved on-die with CPUs as a 3rd or 4th core as they will now be able to take advantage of the higher-density manufacturing techniques that CPU-makers generally pioneer.

One thing this means, though, is that bus speeds and bandwidth will need to grow to take back the performance loss of moving the GPU to a thinner bus and slower RAM.
Look for A(MD/TI) moving to larger caches...

Date
Subject
Author
1.
Jul 24, 2006Jul 24 2006
10.
Jul 24, 2006Jul 24 2006
24.
Jul 24, 2006Jul 24 2006
56.
Jul 24, 2006Jul 24 2006
13.
Jul 24, 2006Jul 24 2006
2.
Jul 24, 2006Jul 24 2006
7.
Jul 24, 2006Jul 24 2006
9.
Jul 24, 2006Jul 24 2006
3.
Jul 24, 2006Jul 24 2006
4.
Jul 24, 2006Jul 24 2006
16.
Jul 24, 2006Jul 24 2006
17.
Jul 24, 2006Jul 24 2006
18.
Jul 24, 2006Jul 24 2006
   FoxConn
21.
Jul 24, 2006Jul 24 2006
    Re: FoxConn
23.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
27.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
29.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
30.
Jul 24, 2006Jul 24 2006
      Re: FoxConn
31.
Jul 24, 2006Jul 24 2006
      Re: FoxConn
32.
Jul 24, 2006Jul 24 2006
      Re: FoxConn
34.
Jul 24, 2006Jul 24 2006
       Re: FoxConn
35.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
39.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
40.
Jul 24, 2006Jul 24 2006
      Re: FoxConn
60.
Jul 24, 2006Jul 24 2006
     Re: FoxConn
61.
Jul 25, 2006Jul 25 2006
      Re: FoxConn
22.
Jul 24, 2006Jul 24 2006
    Re: FoxConn
5.
Jul 24, 2006Jul 24 2006
6.
Jul 24, 2006Jul 24 2006
8.
Jul 24, 2006Jul 24 2006
14.
Jul 24, 2006Jul 24 2006
11.
Jul 24, 2006Jul 24 2006
12.
Jul 24, 2006Jul 24 2006
15.
Jul 24, 2006Jul 24 2006
19.
Jul 24, 2006Jul 24 2006
20.
Jul 24, 2006Jul 24 2006
25.
Jul 24, 2006Jul 24 2006
26.
Jul 24, 2006Jul 24 2006
28.
Jul 24, 2006Jul 24 2006
33.
Jul 24, 2006Jul 24 2006
36.
Jul 24, 2006Jul 24 2006
37.
Jul 24, 2006Jul 24 2006
41.
Jul 24, 2006Jul 24 2006
38.
Jul 24, 2006Jul 24 2006
 42.
Jul 24, 2006Jul 24 2006
What this means.
44.
Jul 24, 2006Jul 24 2006
48.
Jul 24, 2006Jul 24 2006
55.
Jul 24, 2006Jul 24 2006
43.
Jul 24, 2006Jul 24 2006
45.
Jul 24, 2006Jul 24 2006
50.
Jul 24, 2006Jul 24 2006
53.
Jul 24, 2006Jul 24 2006
46.
Jul 24, 2006Jul 24 2006
49.
Jul 24, 2006Jul 24 2006
47.
Jul 24, 2006Jul 24 2006
54.
Jul 24, 2006Jul 24 2006
57.
Jul 24, 2006Jul 24 2006
58.
Jul 24, 2006Jul 24 2006
59.
Jul 24, 2006Jul 24 2006