Post by Yoon on Jul 24, 2006 9:03:16 GMT -5
Hot from the press line... AMD BUYS ATI! More details below:
AMD confirms ATI acquisition
Chip maker borrows $2.5 billion to 'transform the industry'
By INQUIRER newsdesk: Monday 24 July 2006, 10:15
AMD CONFIRMED its acquisition of ATI this morning, three days after the INQUIRER let the cat out of the bag.
While we doubted the chip-maker could afford to buy out the Canadian graphics chip firm, it turns out CEO Hector Ruiz went cap in hand to his bankers and borrowed a cool $2.5 billion.
Ruiz crowed the deal would "reinvent our industry," as he appeared in New York with ATI CEO Dave Orton. At 4.30AM? No wonder Dave Orton looks a bit tired.
AMD agreed to acquire all of the outstanding common shares of ATI for a combination of $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, 2006.
The total comes to $5.4 billion.
AMD said the deal was 'unanimously approved' by the board of directors of each company, but it is still subject to ATI shareholder approval.
David Orton and Hector Ruiz
AMD said it had obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. to help it finance the deal which has captured the imagination of industry-watchers everywhere.
David Orton and Hector Ruiz
Crowed Hector: "Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them."
Dave Orton, President and CEO of ATI claimed all of the companies' product lines would benefit. "Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets," he reckoned
Orton will join AMD as an executive vice president of the ATI business division, reporting to the AMD office of the CEO, comprising Ruiz and president and chief operating officer Dirk Meyer.
But hundreds of other employees will lose their jobs as the new giant seeks to cut operating expenses by around $75 million by the end of 2007.
The combination of AMD's processor expertise with ATI's 'strengths' in graphics, chipsets and consumer electronics, would result in a "new and more formidable company," the pair claim.
The combined company would have achieved approximately $7.3 billion in total consolidated sales during the last four quarters with a workforce of approximately 15,000 employees, according to the joint statement today.
ATI will pay AMD a termination fee of $162 million should the deal yet founder. The transaction is expected to be completed in the fourth quarter of 2006. ยต
Source: The Inquirer - AMD Confirms ATi Acquisition
What a shocker... for the past two months, I only heard whispers of such a deal, but for it to actually happen... wow.
Let's say that this merger is definately going to affect both the CPU and GPU markets, definately the GPU markets more. The Inquirer has also wrote an in-depth arcticle on what this deal means for AMD-ATI, Intel, and nVIDIA: AMD has to buy ATI to survive
If AMD-ATI decide to focus on the CPU market to defeat Intel and abandon the high-end GPU market, nVIDIA will monopolize that sector, meaning that eventually, nVIDIA will be able to set it's own prices on it's cards (think "over-price"), as well as layback on development, if there is a lack of competition. I just hope that the GPU market doesn't become like the sound card market, in which Creative has dominated for the last decade and has barely made any remarkable products due to lack of competition.
AMD confirms ATI acquisition
Chip maker borrows $2.5 billion to 'transform the industry'
By INQUIRER newsdesk: Monday 24 July 2006, 10:15
AMD CONFIRMED its acquisition of ATI this morning, three days after the INQUIRER let the cat out of the bag.
While we doubted the chip-maker could afford to buy out the Canadian graphics chip firm, it turns out CEO Hector Ruiz went cap in hand to his bankers and borrowed a cool $2.5 billion.
Ruiz crowed the deal would "reinvent our industry," as he appeared in New York with ATI CEO Dave Orton. At 4.30AM? No wonder Dave Orton looks a bit tired.
AMD agreed to acquire all of the outstanding common shares of ATI for a combination of $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, 2006.
The total comes to $5.4 billion.
AMD said the deal was 'unanimously approved' by the board of directors of each company, but it is still subject to ATI shareholder approval.
David Orton and Hector Ruiz
AMD said it had obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. to help it finance the deal which has captured the imagination of industry-watchers everywhere.
David Orton and Hector Ruiz
Crowed Hector: "Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them."
Dave Orton, President and CEO of ATI claimed all of the companies' product lines would benefit. "Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets," he reckoned
Orton will join AMD as an executive vice president of the ATI business division, reporting to the AMD office of the CEO, comprising Ruiz and president and chief operating officer Dirk Meyer.
But hundreds of other employees will lose their jobs as the new giant seeks to cut operating expenses by around $75 million by the end of 2007.
The combination of AMD's processor expertise with ATI's 'strengths' in graphics, chipsets and consumer electronics, would result in a "new and more formidable company," the pair claim.
The combined company would have achieved approximately $7.3 billion in total consolidated sales during the last four quarters with a workforce of approximately 15,000 employees, according to the joint statement today.
ATI will pay AMD a termination fee of $162 million should the deal yet founder. The transaction is expected to be completed in the fourth quarter of 2006. ยต
Source: The Inquirer - AMD Confirms ATi Acquisition
What a shocker... for the past two months, I only heard whispers of such a deal, but for it to actually happen... wow.
Let's say that this merger is definately going to affect both the CPU and GPU markets, definately the GPU markets more. The Inquirer has also wrote an in-depth arcticle on what this deal means for AMD-ATI, Intel, and nVIDIA: AMD has to buy ATI to surviveIf AMD-ATI decide to focus on the CPU market to defeat Intel and abandon the high-end GPU market, nVIDIA will monopolize that sector, meaning that eventually, nVIDIA will be able to set it's own prices on it's cards (think "over-price"), as well as layback on development, if there is a lack of competition. I just hope that the GPU market doesn't become like the sound card market, in which Creative has dominated for the last decade and has barely made any remarkable products due to lack of competition.
