AMD-ATI Merger May Be Near

W

Wolfff

Adept
Forbes is confidently reporting that AMD may be in talks to buy ATI Technologies, claiming that an "AMD-ATI Merger Looks Likely."

ATI employees have been talking and analysts are buzzing about the possibility of an AMD-ATI merger. "The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years. We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics," said analyst Apjit Walia.

AMD and ATI are already closely linked together as ATI provides integrated chipsets for AMD desktop and notebook chip offerings. ATI's recently announced Radeon Xpress 1100 and 1150 chipsets provide DX9-level integrated graphics capabilities for AMD's new AM2 processors. And chances are if you purchase an AMD based notebook, you’re going to find an integrated ATI chipset under the keyboard. But while ATI has the upper hand in the mobile sector with AMD systems, NVIDIA clearly is the leader on the desktop side of things. It remains to be seen what an AMD-ATI merger would do for the desktop market.
 
This may force an Intel-nVidia Merger? :eek:hyeah:

Thatll be awesome. nVidia will surely pull ahead of ATi then :p, with the money of Intel and all :p.
 
That was different. In this case there is no convinving reason for AMD to acquire Nvidia. And i doubt AMD has the cash to finance the acquisition either. Infact ATI has closer ties to Intel than to AMD and if it was gonna be taken over i would think it would be by intel.
 
mjp1618 said:
I don't think it is legally possible for Intel to buy ATI, or nVidia for that matter...
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If one wants to buy and the other wants to sell, why not? :S Or even if they dont want to sell a hostile takeover is always possible.
 
I think u guys are missing the point. If a merger/take-over takes place then there's possibility of improved chipsets as both the developers & engineers will be able to work together much more closely than ever before. If they do it in the price-conscious fashion which they've been doing till now they'll take market-share from Intel. Also one can dream of combo or triple offerings at a similar takeaway price.

This all is if it happens. Also what competition laws are there in US or Europe so don't know how they'll look at it. AFA I'm concerned it's just a possibility.
 
Yes but also look at it this way: If say amd and ati where to merge and nvidea and intel where to merge, there would be that much less competition. prices would go down much slower then they have been. true you might get better products, but they wouldn't be that much better. i think it would be better for all four of those companies to remain seperate. that allows nvidea to compete with ati which in tern lowers the prices of amd and intel hardware that is based on either.
 
as of now, its just a rumour. both the companies have not responded officially, and till then im keeping my hands crossed. but i would love the merger though. always liked the ati+amd combo, and a merger can only make things better in this front.
 
Techno wise i agree it would make things better. I think our wallets would suffer thou. Hopefully AMD will just buy like a large stake in ATI. that would be nice. then they would work more closley but still be seperate companies.
 
hunt3r said:
If one wants to buy and the other wants to sell, why not? :S Or even if they dont want to sell a hostile takeover is always possible.
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I think there are different issues involved...

Trade regulations... Monopoly prevention laws... I am not exactly sure...

The same reason why Intel cannot buy AMD either.

But AMD can buy ATI, because AMD is not even close to a monopoly, and would not be one even if they buy ATI and nVidia.

I am not such an expert on American corporate laws :) , but I have read some news and posts in other sites to this effect...
 
It would be very hard for anti and nvidea and or intel and amd to merge under the our "truman antri-trust laws" which prohibits large monopolies.

thou i agree it would be very possible for ati to merge with amd or intel or nvidea to merge with amd or intel

i don't think any of it will happen thou
 
The merger wont create a monopoly so that is out of question. They are completely different markets. Its more of a vertical integration (though not exactly) than a monopoly strategy.
And even if intel acquires ati/nvidia it wont be termed as a monopolization.
 
@ Renegade

The problem is, ATI and nVidia are the 2nd and 3rd (not sure about the order though) largest graphics component manufacturers in the world. And the largest is: Intel.

Intel acquiring any of these will be hugely disadvantageous to the other company, and could be characterized as a monopoly; and I think this is one of the reasons why it might not happen...

But AMD does not have any graphics products, so no problem for them...

Again, I am not a big expert on American corporate laws....
 
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