Recap of AMD-ATI Merger Analysis
July 25, 2006 11:07 AM
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What does the future hold for AMD and ATI?
The AMD-ATI merger had been
rumored for months
. Many took it as wild speculation on a deal that would likely never come to fruition. Well, over the weekend the rumors became
even more credible
AMD made the big announcement
completed an interview with AMD
and in addition received some
from NVIDIA's Derek Perez; "So if you think about it, it’s kind of like ATI’s thrown in the towel right? Getting beat on both ends, looking for a way out, a little bit like 3dfx a few years back." Of course, it should probably be mentioned that NVIDIA bought 3dfx.
AMD executive vice president Henri Richard took the opportunity to sit
down and talk with
about the ATI acquisition and its plans for the future. In the interview, Richard talks about the perceived risk that AMD is taking by possibly biting off more than it can chew with the acquisition, what this means for AMD's relationship with NVIDIA and the company's plans for graphics in general. When asked if AMD motherboards would still use NVIDIA core logic, Richard replied "I surely hope so, absolutely." In
an interview with
, Perez also assures us "We will continue to work with AMD to bring our brands to our mutual customers," but warns "We are now Intel's best GPU partner."
Cliff Edwards at
claims the writing is already on the wall for disaster. AMD CEO Hector Ruiz stated that "We will move from being neighbors to being a family," to which Edwards immediately followed up with "the problem with families — especially those formed by multibillion-dollar corporate mergers — is that they often end up dysfunctional." Edwards
goes on to detail
why the merger is great for NVIDIA and Intel, and detrimental for ATI and AMD.
Scott Wasson from
has a very
concise outline of the details
surrounding the deal, Mercury Research claims "
the holy grail of integration for ATI and AMD is going to be an integrated processor
— a combination of a graphics processor and a processor," Forbes believes
the mobile semiconductor industry will turn into a bloodbath
, TSMC assured the world its
manufacturing relations with ATI will continue business as usual
believes an AMD-ATI system-on-a-chip is
the only way for both companies to survive
, and finally CRN has
the definitive "no" as to whether or not AMD will produce its own line of motherboards
based on ATI core logic.
And finally, Ken Fisher at
everyone should take a breather and lay off the rampant speculation
, as the deal is still not even finalized. Specifically Fisher claims "And when it comes to claims about motherboard licensing, ATI, NVIDIA, and chipsets, bear this one key point in mind: this is not a done deal." However, if ATI does terminate the agreement at this point the company will have to fork over $162M dollars to AMD.
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RE: ATI has problems
7/25/2006 12:29:16 PM
I have read many article, blogs and threads about this take over. I really think this is good for ATI and AMD. ATI does have a bigger market share but not as big revenue as Nvidia. All ati ever needed is a new management that would things for effectively and efficiently.
Intel contract will end with ATI and this would mean ATI looses 80% of its desktop mainboard sales. That is worth around $100million for ATI. Intel DX10 integrated GPU will be ready by the time ATI contract expires and I doubt they would deal with Nvidia.
RE: ATI has problems
7/26/2006 5:02:09 AM
Yes I think the synergy is great and nothing weird can happen under Hector management. This guy is a smart ass with a great understanding of the market and he knows precisely how to have thing done properly. I may recommend two excellent pages for all material regarding Hector and ATI.
Ruiz' life is very interesting and the ATI's page gives you lots of info and precious links
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
AMD-ATI: A Done Deal
July 24, 2006, 5:00 AM
Update: AMD Board Approves Acquisition of ATI, Bankers Confirm
July 22, 2006, 12:20 AM
Forbes Claims AMD-ATI Merger May Be Near
May 31, 2006, 12:51 PM
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