AMD to buy ATI?

[Darth Quorthon]

Browsesd the board for this, didn't see it, so sorry if this is a re-post

Forbes is reporting that an AMD-ATI merger looks to be a distinct possibility.

Advanced Micro Devices may be looking to buy graphics company ATI Technologies, a move that would benefit the overall graphics industry, according to RBC Capital Markets.

"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years," wrote analyst Apjit Walia in a note to investors Wednesday. "We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics."

I am no business expert, but from the above quote is seems like one of AMD's reasons for such a move would be to add capacity, something Intel has in spades over them right now. Overall I found the article to be an interesting read.

[Ace Pace]

This is a rumour that has been around for years, chances of it happening? no one knows.

[Netko]

Its an analyists opinion based on the current market situation without any input of the bigwigs at ATI or AMD.

I'm personaly calling bullshit since this came out of the left field compleatly. AMD has a stong relationship with nVidia (who are probably their best chipset maker) and aquireing ATI, even if leaving most of the buisness seperate (which begs the point why aquire it?) would, at the very least, create tensions in that relationship. Some have speculated that the purchase might be so that AMD gains a in-house chipset design team, but that is also bullshit since AMD had such a team during the original Athlons era and could probably assemble one again if it wanted/needed to.

Not to mention that whenever I read projections based on "Synergy! Dynamics!" I feel a natural tendency to dismiss it and/or hope that nobody is stupid enough to spend a lot of money on reasons that, more often then not, just fuck up everything for little gain.

[Pezzoni]

Twood be cool for sure: my two most favored computer manufacturing companies joining up... Whilst I can't really see why it would be hugely benaficial, it feels warm and fuzzy

Who knows if it'll actually happen though.