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AMD-ATI seek shareholders agreement for Merger on Monday!!

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July 21, 2006 1:24:35 PM

http://www.theinquirer.net/default.aspx?article=33185

AMD and ATI to ask shareholders for merger approval

Monday's news today


By Fuad Abazovic: Friday 21 July 2006, 13:53

ACCORDING to an extraordinarily reliable source, AMD and ATI will on Monday pitch their shareholders with the proposition that the two companies merge.
It's an interesting idea - AMD doesn't quite have the shekels in the bank to buy ATI outright. The deal, subject to shareholder approval, may still founder.

If the deal goes through, Nvidia and its SNAP partnership with AMD will definitely be reconsidered and Nvidia will all of a sudden become a super underdog compared to the new juggernaut. It may also stop the endless bickering between ATI and Nvidia that's entertained the world+dog for some years now.

AMD will be glad to get its hands on ATI's very profitable handheld division. The firm needs good chipsets and will also benefit from a great consumer digital chip segment. It will also like the integrated graphics business and will now get a piece of this action. µ
July 21, 2006 1:25:01 PM

5455.1
http://www.theinquirer.net/default.aspx?article=33175

AMD's Dresden, New York fabs could make GPUs

If necessary


By Fuad Abazovic: Friday 21 July 2006, 09:55

ORDINARILY, YOU have to design a GPU for the specific Fab in which you intend to build it. Therefore you have the chips such as ATI's RV515 which is the TSMC chip and RV516, which is the UMC version. It is interesting that both chips have the same specification but the Fabs are not compatible and neither is able to make a chip designed for the competition's fab.
We hear that both Fab 36 in Dresden and the planned AMD factory in New York State could be capable of producing GPUs, if necessary. Both ATI or Nvidia, as potential customers or as a part of the new AMD, would have to heavily redesign their GPUs to produce them but the bottom line is that it is possible. Of course, AMD would have to have some excess capacity to accommodate either.

ATI could start making R700 derivates to fit the needs of AMD's fabs and we are quite sure that R800 and its derivates could be designed for a potential AMD Fab from day one.

It would take time but it would be possible. But just to underline it could be done. This may shed a new light on the potential acquisition whispers. µ
July 21, 2006 3:05:18 PM

This is heating up...even though its still all INQ rumours

I guess we will know on monday...

i put some feelers out to all the big sites to see what they have heard...
July 21, 2006 3:11:44 PM

Quote:
http://www.theinquirer.net/default.aspx?article=33185

AMD and ATI to ask shareholders for merger approval

Monday's news today


By Fuad Abazovic: Friday 21 July 2006, 13:53

ACCORDING to an extraordinarily reliable source, AMD and ATI will on Monday pitch their shareholders with the proposition that the two companies merge.
It's an interesting idea - AMD doesn't quite have the shekels in the bank to buy ATI outright. The deal, subject to shareholder approval, may still founder.

If the deal goes through, Nvidia and its SNAP partnership with AMD will definitely be reconsidered and Nvidia will all of a sudden become a super underdog compared to the new juggernaut. It may also stop the endless bickering between ATI and Nvidia that's entertained the world+dog for some years now.

AMD will be glad to get its hands on ATI's very profitable handheld division. The firm needs good chipsets and will also benefit from a great consumer digital chip segment. It will also like the integrated graphics business and will now get a piece of this action. µ



With all of their talk abotu partners and collaboration, this would be a bad move. How can they merge with ATi when nVidia just released the business platform for them.

I may as well go with Intel if they do this. It'll just lead to more isolation and hard feelings.

Hopefully Fuad is smoking crack.
July 21, 2006 3:13:56 PM

Quote:
This is heating up...even though its still all INQ rumours

I guess we will know on monday...

i put some feelers out to all the big sites to see what they have heard...


Some idiot last week was ANALYZING( :wink: ) the market and stated we won’t see AMD shares below $20. Look what happened today! AMD is seeking alliance with Zergs to boost the stock market this Monday. AMD, honey, suck it up and send out those K*Ls sooner.
July 21, 2006 3:21:51 PM

we will see monday ...
July 21, 2006 3:27:46 PM

Quote:
we will see monday ...



That's true. AMD may setup some strategic partnership for chipsets but nVidia would shyt a brick right on AMDs head if they merged with ATi.

Fuad's on crack.

Where would AMD be without nForce? Or VIA?
July 21, 2006 3:31:40 PM

hard to beleive AMD is down 13% overnight. Oh BTW Lordpoop is 0-inch or his tween.
July 21, 2006 3:32:08 PM

its funny you mentioned VIA....

AMD needed VIA bad to launch the Athlon...there was no NFORCE chipset at the time.

But did AMD stay loyal to VIA and freeze out NVIDIA from making the NFORCE

No... good thing they didnt

same thing with ATI

being too loyall in business its bad for business

If The ATI merger makes sense for AMD ...then pull the trigger
July 21, 2006 3:32:48 PM

That's nonsense. If they are really pitching this to their shareholders on Monday, AMD MUST inform their shareholders now, or well before Monday. At the very least, they must have said something during their Q2 results announcement yesterday. It's legally required. AMD is a publicly-listed company - they can't do things like this without informing the market.
July 21, 2006 3:43:47 PM

so you have to ASK the shareholders well in advance if u can ask them for a merger agreement?
July 21, 2006 3:48:57 PM

Quote:
so you have to ASK the shareholders well in advance if u can ask them for a merger agreement?


No if you are asking shareholders to approve something as big as a merger, you need to call a shareholders meeting and you MUST give sufficient notice to them, probably around 2 weeks in advance and you have to send out circulars to them explaining the deal, terms and the reasons. If they are only planning to announce that they are in discussions with ATI on Monday, it is highly unlikely that they could have gotten away without saying anything at the results announcement only yesterday. That would be very bad management and I doubt a company like AMD would sneak up on the market like this. In any event if there is truly something like a merger announcement coming up on Monday, their stock would not be hitting its 52-week low today. If there is something really going on, it would not be so soon after the results announcement yesterday.
July 21, 2006 3:54:54 PM

Quote:
its funny you mentioned VIA....

AMD needed VIA bad to launch the Athlon...there was no NFORCE chipset at the time.

But did AMD stay loyal to VIA and freeze out NVIDIA from making the NFORCE

No... good thing they didnt

same thing with ATI

being too loyall in business its bad for business

If The ATI merger makes sense for AMD ...then pull the trigger



they didn't merge with nVidia. nVidia just had a better chipset. The merger has not been mentioned by either company, so I doubt it. Originally the first chipset was AMD760, VIA came along and then SiS, nVidia and ATi.

nVidia won fair and square and even though ATi is improving they owuld be foolish to take that on. It would take a hit on Fab costs probably and would cause nVidia to remove alot of their support for AMD platforms.

Bad business move anyway you look at it. or at least anyway I look at it.
July 21, 2006 3:56:12 PM

Quote:
its funny you mentioned VIA....

AMD needed VIA bad to launch the Athlon...there was no NFORCE chipset at the time.

But did AMD stay loyal to VIA and freeze out NVIDIA from making the NFORCE

No... good thing they didnt

same thing with ATI

being too loyall in business its bad for business

If The ATI merger makes sense for AMD ...then pull the trigger
So....basically what you're saying is that it's okay for AMD to follow dirty business practices, but Intel is the only one who does anything dirty...as has been argued in these forums for the last few weeks(AMD Lawsuit). It's hilarious the way AMD is worshipped as moral, etc. but i guess they aren't either. :o 

You fanboys are such hypocrits!! :roll:
July 21, 2006 4:00:50 PM

you read that ...i took it as a shot to INTEL and that i said AMD is morally good


u need to lay off the meth my friend...atleast take a few hours off
July 21, 2006 4:05:54 PM

IMO AMD really needs this to happen.

I have never owned an AMD machine because almost every AMD machine I build has had issues and they are all chipset related.

VIA chipsets have issues using some ATi video cards and don't OC worth a damn. VIA needs an enthusiast platform. I've also had customers with USB scanners that would not work on a VIA USB controller.

nVidia has yet to fix their data corruption issues and compatibility with many modern hard drives (esp. Seagate and Maxtor). They still deny the issue when referring to their new 500 series chipsets and blame it on the hard drive manufacturers. Also, their onboard hardware router in the south bridge corrupted internet downloads when installing the software and using default settings. At least they ditched that.

Many commercial capture cards for security cameras will only work with Intel chipsets. Something fishy there. I think if AMD had their own chipset, they could pressure more companies into supporting their products.

AMD needs to have complete control over at least one platform to ensure one as compatible and reliable as Intel's is on the market at any given time.

I don't think it would be bad for the market as other chipsets would always exist as an alternative. Plus, it might pressure 3rd party chipsets companies to fix their problems.
July 21, 2006 4:15:33 PM

Quote:
you read that ...i took it as a shot to INTEL and that i said AMD is morally good


u need to lay off the meth my friend...atleast take a few hours off
Welcome to the Horde....you're now an honorary member. You may now say the stupidest things you want, that are irrelevent and make no sense, and being a Horde member is your excuse. Let the mouth diarrhea continue.
July 21, 2006 4:43:14 PM

Quote:
That's nonsense. If they are really pitching this to their shareholders on Monday, AMD MUST inform their shareholders now, or well before Monday. At the very least, they must have said something during their Q2 results announcement yesterday. It's legally required. AMD is a publicly-listed company - they can't do things like this without informing the market.


I don't see why they couldn't announce on monday intentions to merge. Shareholders can still reject the plan if they so choose. These mergers can easilly take a year to close.
July 21, 2006 4:44:09 PM

Assuming for the moment that the article is correct, the real factor to be thought of here is what they can do together that would be stellar.

Read the THG article of the day about graphics cards and the need for lower power, less heat and just think for a moment what the expertiese at AMD could do for them in a merged enviuronment. If true and done right, AMD could more rapidly come out with new cards that might not require your own power station on the forrest moon of Endor to supply it.

The way I see it going is:

AMD and ATI merge.
Intel announces that it's already been tooling up for graphics
Nvidia flounders for a year and then works hard to find someone to buy them.


I happen to like Nvidia. But things are looking bleak.
July 21, 2006 4:46:23 PM

Quote:
its funny you mentioned VIA....

AMD needed VIA bad to launch the Athlon...there was no NFORCE chipset at the time.

But did AMD stay loyal to VIA and freeze out NVIDIA from making the NFORCE

No... good thing they didnt

same thing with ATI

being too loyall in business its bad for business

If The ATI merger makes sense for AMD ...then pull the trigger
So....basically what you're saying is that it's okay for AMD to follow dirty business practices, but Intel is the only one who does anything dirty...as has been argued in these forums for the last few weeks(AMD Lawsuit). It's hilarious the way AMD is worshipped as moral, etc. but i guess they aren't either. :o 

You fanboys are such hypocrits!! :roll:

I'm confused. Why is it dirty, nevermind immoral, to let Nvidia make MBs for the AMD platform?
July 21, 2006 4:57:18 PM

hey, maybe this is the beginning of the entire pc on one chip era lol.... that would be good, but its not gonna be for a long time. :cry:  :wink:
July 21, 2006 5:04:51 PM

http://www.reghardware.co.uk/2006/07/21/investors_eye_a...

Investors buy into AMD-ATI tie-up rumour?
By Tony Smith
21st July 2006 15:21 GMT
Security White Papers - Download them free from Reg Research Is ATI about to be acquired by AMD? You might well think so looking at the graphics chip company's share price in early Nasdaq trading today - and that of its arch-rival, Nvidia.

ATI shares opened at $16.22 after closing yesterday at $15.77 - a jump of 45 cents. Relatively heavy trading subsequently lifted it to $16.55. Nvidia's stock, by contrast, opened well below it closing price of $19.93 at $18.18, a fall of $1.75. Early morning trading saw NVDA shares traded for as little as $17.87.


AMD's stock opened at $19.34, down from $21.57 at close of play yesterday. A sign of the market's uncertainty about the upside for the company should it buy ATI? More likely a reaction to last night's Q2 earnings announcement, which saw big year-on-year gains but were down on the previous quarter's figures.

It's certainly possible to read into the figures expectation of an ATI-AMD marriage. ATI's shares are rising in anticipation of an acquisition, while rival Nvidia's are falling because of the impact such a deal might have on the company, which as close ties to AMD.

The AMD-ATI tie-in was first mooted by RBC Capital Markets analyst Apjit Walia at the end of May. He didn't offer any evidence for the suggested deal, he simply highlighted the synergies between the two firms given AMD's stated goal to increase production.

Then earlier this month, one Chinese-language site claimed the two firms had agreed the terms of the deal and were preparing their statements to the market - presumably timed to appear after AMD published its Q2 figures which, of course,
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.....
July 21, 2006 5:55:04 PM

Quote:
hard to beleive AMD is down 13% overnight. Oh BTW Lordpoop is 0-inch or his tween.
No he isn't. 9-Inch doesn't have bad grammar like this guy.
July 21, 2006 6:18:50 PM

Quote:
u need to lay off the meth

Look who's talking.
July 21, 2006 7:21:11 PM

your mother
July 21, 2006 7:57:33 PM

I dont know why ATi would want to share AMDs huge debts...
July 21, 2006 8:17:12 PM

Quote:
I dont know why ATi would want to share AMDs huge debts...


Not only that, but you would be trying to get two seperate chips to 65nm at the same time.
AMD would also be isolating its biggest proponents (motherboard manufacturers), and AMD knows nothing on marketing graphic cards.

The only thing that makes sense about a merger is that AMD could take in the royalties from XBOX and Nintendo. Nothing about this seems beneficial to ATI.
July 21, 2006 8:39:44 PM

ATi would save huge dollars by being able to fab its chips at AMD
ATI WILL NOT BE TO 65um TILL 08 AT THE EARLIEST.

Amd will be at or close to 45 um by then

so you do not know what you are talking about.
July 21, 2006 9:00:49 PM

Quote:
ATi would save huge dollars by being able to fab its chips at AMD
ATI WILL NOT BE TO 65um TILL 08 AT THE EARLIEST.

Amd will be at or close to 45 um by then

so you do not know what you are talking about.


As Mex points out, ATI is starting the shift to 65nm now (He states December release, other links state Q1 '07 - depends how fast to go from "taped out" to finished product.) ATI wants a DX10 chip @ 65nm for Vista release.

As to manufacturing, AMD is already bring Chartered on to make chips.

I think you misunderstand the intent of my post - I am not trying to bash ATI or AMD, I just really can't see what the advantage to ATI would be - at this time anyway.
If AMD had 65nm perfected now, and had its New York fab built and all the rest re-tooled, I could see a manufacturing advantage for ATI right now. But, I think AMD has enough on its plate at the moment.
July 21, 2006 9:17:42 PM

how is ATI going to 65nm? I thought they were still on 130nm and just going to 90nm? Isn't that what nvidia just did?
July 21, 2006 9:32:36 PM

Comparison of ATI GPUs
Courtesy of Wikipedia; column 4 shows the fab process.
This says that ATi switched from 130/110nm to 90nm when they released their X1K line.

Comparison of nVidia GPUs
(Same source & column)
nVidia's is a mess...they use a mix of 90/110, mainly 90nm on their 7 series.

Quote:
how is ATI going to 65nm? I thought they were still on 130nm and just going to 90nm? Isn't that what nvidia just did?

To answer the question, it seems that they switch processes mainly whenever they introduce new lines of GPUs.
July 21, 2006 9:38:13 PM

ATI graphic cards and chipsets are on 90nm and have been for all of this year.
July 21, 2006 9:39:17 PM

ATI was going from 90nm to 80nm then to 65. The 80nm process couldn't give decent yields, so they are going 65nm on the top-end, and are going to integrate the rest through '07.


Mex, thanks for the link, very nice. Did you notice the resemblance between Jerry Sanders (AMD) and Colonel Sanders (KFC)? :p 
July 21, 2006 9:42:20 PM

8O
Now you've gone and made me hungry.
July 21, 2006 9:42:38 PM

Quote:
ATi would save huge dollars by being able to fab its chips at AMD


...assuming that AMD has capacity to fab ATI GPU chips...and that's a near impossible proposition at the moment I believe.
July 21, 2006 9:44:43 PM

Quote:
ATi would save huge dollars by being able to fab its chips at AMD


...assuming that AMD has capacity to fab ATI GPU chips...and that's a near impossible proposition at the moment I believe.

since ATI is struggling to keep up with current production plus transitioning to 65nm and AM2 and 4x4.
July 21, 2006 9:47:14 PM

Quote:
nVidia has yet to fix their data corruption issues and compatibility with many modern hard drives (esp. Seagate and Maxtor). They still deny the issue when referring to their new 500 series chipsets and blame it on the hard drive manufacturers. Also, their onboard hardware router in the south bridge corrupted internet downloads when installing the software and using default settings. At least they ditched that.



You may just have bad luck. I have never had an issue with nVidia chipsets. I have been running my 4GB 4400+ almost non-stop since last Oct. with norce 4 SLI (only one GPU). I have had maybe one game crash and never lost any data.

I am using a Seagate 7200.8 250GB with no issues. I can't say what your problems are but it isn't the general quality of nVidia chipsets.

My old machine has nForce 3 with 754 and western Digital and I never had any issues.
July 21, 2006 9:48:49 PM

I may be wrong in ATI giving up on 80nm (just Googled it). There are many links saying ATI is still transitioning some lines to 80nm.

Nvidia is currently going to 80nm
http://www.neoseeker.com/news/story/5908/
July 21, 2006 9:56:00 PM

What I heard is that ATi is switching their top of the line GPUs to 65nm and everything else will go to 80nm. But that's just for their upcoming DX10 cards. I don't know what they are doing with older models.
July 21, 2006 9:57:09 PM

Do you think ATI might be slowing down or canceling its work on Intel compatible chipsets?

You can sell a billion Conroe but without motherboards you got jack.

Sounds like a countersuit for Intel against AMD should the merger or buyout happen.
July 21, 2006 9:58:07 PM

Quote:


You may just have bad luck. I have never had an issue with nVidia chipsets. I have been running my 4GB 4400+ almost non-stop since last Oct. with norce 4 SLI (only one GPU). I have had maybe one game crash and never lost any data.

I am using a Seagate 7200.8 250GB with no issues. I can't say what your problems are but it isn't the general quality of nVidia chipsets.

My old machine has nForce 3 with 754 and western Digital and I never had any issues.


The drive issue has only been with Maxtor drives, I believe. (Seagate recently aquired Maxtor so that's probably why they're also mentioned in the quote, and I don't think WD drives have an issue at all.)
July 21, 2006 10:22:54 PM

Quote:
ATi would save huge dollars by being able to fab its chips at AMD
ATI WILL NOT BE TO 65um TILL 08 AT THE EARLIEST.

Amd will be at or close to 45 um by then

so you do not know what you are talking about.


LMAO. You should look up where TSMC are up to with their 65nm process.
July 21, 2006 10:35:23 PM

Found a link to the merger on Reuters. Can it be happening, or is Reuters actually using the Inquirer as a source for something?

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060721:MTFH13006_2006-07-21_21-44-40_N21251601&type=comktNews&rpc=44

Either way, if AMD's stocks keep falling (Now below $18 in after market trade), will AMD be able to afford ATI since it doesn't have enough cash to buy outright?

Any chance this is a rumor by AMD to increase their own stock value?
July 22, 2006 12:10:24 AM

http://www.tgdaily.com/2006/07/21/amd_to_swallow_ati/

Quote:
AMD to swallow ATI for $5.6 billion?

Wolfgang Gruener

July 21, 2006 17:19



Chicago (IL) - Rumors about an upcoming Amd bid to acquire chipset company and grphics chip develop AMD have resurfaced on Friday. According to an article published by globeandmail.com, AMD could make a friendly offer as early as next week. The website referred to sources, which suggested that AMD is considering a $5.6 billion takeover bid.

AMD's board apparently has approved a takeover offer, "according to an investment banker familiar with the talks."


ATI's shares were traded at $16.56 late Friday, up $0.83 or 5.3% for the day. At the current stock price, the company is valued at a market capitalization of $4.2 billion. AMD traded at $18.26, down almost 16% for the day as a result of a rocky second quarter.

Considering AMD's current balance sheet, a takeover of ATI could be a significant stretch for AMD. The company has just about $2.5 billion in its warchest, which would mean that a the majority of the speculated takeover amount will consist of AMD stock.

It is unclear at this time what benefits the addition of ATI would bring to AMD's business. Graphics as well as chipsets diversify AMD's business, but are also viewed as potential distractions from the firm's core business. The fact that ATI is currently shipping low-end chipsets to Intel also appears to be not a convincing reason for AMD to shell out more than $5 billion for the Canadian company.

At this time, ATI also does not appear to be an attractive takeover target in a financial view: The firm currently holds assets valued at about $1.35 billion - $166 million of that in cash - and recent quarter earnings were just above $32 million. In comparison, ATI rival Nvidia has products that have closer ties to AMD's products. Nvidia is currently valued at about $6.3 billion and reported net income of $91 million in its most recent quarter report.
Print View
July 22, 2006 12:17:21 AM

About an hour ago:

AMD Said near $5.5 Bin Deal

Quote:
Unless talks break down, a deal could be announced as early as Monday, the source said.

ATI and AMD both declined to comment.
July 22, 2006 2:48:24 AM

I think this is a rediculously stupid move.

Considering:

Nforce 590 series that they for AMD, I do hope "Intel Editions" come out soon.
SLI is supported on more AMD boards than Intel.
Crossfire is the opposite.
ATI is stuck with the underperformer for at least a year.

Well, looks like Nvidia and Intel are now gonna have some babies. AMD now has overwhelming control over GPU and chipsets from ATI, so they are stuck, while Intel can still make chipsets for both graphics companies.

These are all my personal thoughts, I'm not going to post proof or links cause it is exactly that, what I think.
July 22, 2006 3:11:44 AM

Quote:
It's gotta be the GPU, there is something brewing in microelectronics land in terms of CPU/GPU/Physics that we don't know about,


I was called names for this same view
!