Gamernode: News - AMD Purchases ATI

AMD Purchases ATI

After several months of speculation, AMD officials have finally announced their plans to acquire ATI technologies through a merger agreement worth approximately $5.4 billion (US). The combined efforts of these two well known companies, now operating under one roof, is expected to allow room for more innovation and cooperation in the same manner as Microsoft and Nvidia, who are working together on integrating Windows Vista with the next generation of graphics cards.

"ATI shares our passion and complements our strengths: technology leadership and customer centric innovation," said AMD Chairman and CEO Hector Ruiz.  "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."

Many business analysts are worried, however as this ambitious move could potentially backfire.

Multi-billion dollar agreements such as this don't always pan out as expected, but the foundation seems to be strong and support appears to be unanimous with the board of directors from each company backing the merger.

"This combination means accelerated growth for ATI, and broader horizons for our employees," explained Dave Orton, President and CEO of ATI. "All of our product lines will 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."

The deal, pending shareholder agreement and regulation approval, is expected to close in the fourth quarter of 2006.

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