Intel to Outbid AMD and purchase ATI!

[LordPope]

http://eresearch.fidelity.com/eresearch/goto/evaluate/news/basicNewsStory.jhtml?symbols=AMD&product=JGN/JGN&provider=CBSMW&storyid=NEWS.CBSMW.81585B6240384B068769.3EC55BFF2305



This rumor is BS...Intel would be in serious violation with the FTC for this...plus ATI has signed on the dotted line....to pull out , they have to pay AMD 162 million in cash


but i dont want to seem like i only post PRO AMD rumors

 

[BaronMatrix]

http://eresearch.fidelity.com/eresearch/goto/evaluate/news/basicNewsStory.jhtml?symbols=AMD&product=JGN/JGN&provider=CBSMW&storyid=NEWS.CBSMW.81585B6240384B068769.3EC55BFF2305



This rumor is BS...Intel would be in serious violation with the FTC for this...plus ATI has signed on the dotted line....to pull out , they have to pay AMD 162 million in cash


but i dont want to seem like i only post PRO AMD rumors

Plus mergers aren't auctions. ATi doesn't have to accept the offer especially since Intel has already thrown them out of in house chipsets. Some were saying this may happen but ATi is much better off with AMD as they will be a separate division.

 

[RichPLS]

How did Intel throw them out of chipsets?

 

[Ycon]

to pull out , they have to pay AMD 162 million in cash

And wheres the problem?

 

[BaronMatrix]

How did Intel throw them out of chipsets?

There will be no more ATi chipsets in Intel mobos. They can still design their own though.

 

[LordPope]

i think you may see a socketed ATI physics processor in the near future..... i wonder how hard it would be to just take like a x1600 chip and tweak be a PPU then socket it.

 

[raytracer06]

This rumor has been relayed by The Inquirer :

http://www.theinquirer.net/default.aspx?article=33265

we can conclude it is something VERY serious ! :lol: :lol: :lol:

 

[jaguarskx]

http://eresearch.fidelity.com/eresearch/goto/evaluate/news/basicNewsStory.jhtml?symbols=AMD&product=JGN/JGN&provider=CBSMW&storyid=NEWS.CBSMW.81585B6240384B068769.3EC55BFF2305



This rumor is BS...Intel would be in serious violation with the FTC for this...plus ATI has signed on the dotted line....to pull out , they have to pay AMD 162 million in cash


but i dont want to seem like i only post PRO AMD rumors

It could be a tactic to force AMD to offer a higher bid for ATI.

 

[LordPope]

how can this be a attempt to up the price for AMD

this deal is already signed...

it may be a attempt to up ATI's stock price

anyone with even a basic knowledge of ANTI-TRUST .. knows INTEL could never buy ATI.... it wouldnt be allowed

 

[gudodayn]

Since AMD bought ATI.........
For Intel to buy ATI...wouldnt they have to buy it from AMD??

I know things are not finalized but it does means that it's been sold and they are working towards a complete take over bit by bit!!

So from your title.....do you mean that Intel wants to buy ATI from AMD???

 

[mjp1618]

Since AMD bought ATI.........
For Intel to buy ATI...wouldnt they have to buy it from AMD??

I know things are not finalized but it does means that it's been sold and they are working towards a complete take over bit by bit!!

So from your title.....do you mean that Intel wants to buy ATI from AMD???

As you said, nothing is finalised yet... ATI's shareholders are yet to agree to AMD's bid.

The rumors say that Intel is aiming for a hostile takeover; against the wishes of ATI's board. It is possible, Intel could offer a much higher price than AMD and woo the shareholders.

BTW, I think the rumors are BS... Intel does not need ATI; ATI does not have anything that Intel does not have... Plus, it would be very difficult for Intel to get through the legal hurdles... Also, Intel has been very, very, very cool about the whole AMD+ATI rumors since they surfaced; almost as if they want it to happen...

Disclaimer: I am not an expert on Corporate laws or corporate functioning; almost all my knowledge on such things are based on reports from the recent Mittal-Arcelor-Severstal news...

 

[icbluscrn]

http://eresearch.fidelity.com/eresearch/goto/evaluate/news/basicNewsStory.jhtml?symbols=AMD&product=JGN/JGN&provider=CBSMW&storyid=NEWS.CBSMW.81585B6240384B068769.3EC55BFF2305



This rumor is BS...Intel would be in serious violation with the FTC for this...plus ATI has signed on the dotted line....to pull out , they have to pay AMD 162 million in cash


but i dont want to seem like i only post PRO AMD rumors

DUDE, Violation of FTC? Man sometimes these forums make me laugh.....In what aspect of anti trust would intel be breaking?Let me hear this.
I think i have basic knowledge. Intel could offer ATI whatever they wanted, ATI shareholders first have to agree on the merger with AMD. So they are still two different companies.$162 million is a drop in the bucket for the money that would be changing hands if they do pull out




and again about the intel chip license lol so who is telling the truth?you started <------click

 

[BaronMatrix]

i think you may see a socketed ATI physics processor in the near future..... i wonder how hard it would be to just take like a x1600 chip and tweak be a PPU then socket it.

I wouldn't be surprised. It could be the first Torrenza chip and used in 4x4 by just taking all of the PCI slots out slapping Azalia on and adding a third PCIe or HTX. I'm sure they will do both to make the Intel dollars, even though AMD has supposedly written off all ATi's Intel income as a loss.

 

[Panzerzero]

Also why would Intel need another graphic card arm the company already has one the money would be spent on increasing that market share.

 

[LordPope]

you do realize INTEL is the biggest seller of GPU's in the world

They would be in violation of FTC laws by buying Ati or nvidia for that veryreason.

has nothign to do with the CPU side of the business.

 

[BaronMatrix]

http://eresearch.fidelity.com/eresearch/goto/evaluate/news/basicNewsStory.jhtml?symbols=AMD&product=JGN/JGN&provider=CBSMW&storyid=NEWS.CBSMW.81585B6240384B068769.3EC55BFF2305



This rumor is BS...Intel would be in serious violation with the FTC for this...plus ATI has signed on the dotted line....to pull out , they have to pay AMD 162 million in cash


but i dont want to seem like i only post PRO AMD rumors

DUDE, Violation of FTC? In what aspect of anti trust would intel be breaking? I think i have basic knowledge. Intel could offer ATI whatever they wanted, ATI shareholders first have to agree on the merger with AMD. So they are still two different companies.$162 million is a drop in the bucket for the money that would be changing hands



and again about the intel chip license lol so who is telling the truth?you started <------click



There are 3 major GPU makers onboard or discrete and that would mean Intel would have 55% of the market. They have about 32% now. The FTC would look closely at that. It's not 70% but it could easily be in two years. Even if they were to not rebrand Radeon or IGPs or chipsets, that would be another near monopoly (it's not 100%; it's defined as having enough share to change the market with pricing) usually around 70%.

Besides, very few times have shareholders disapproved when the CEO and Board are behind it. Has anyone ever seen a case? The deal should be done by Q4.

Since AMDs growth would benefit Ontario with new jobs (they are leaving the offices) that shouldn't be a problem and any special investigators will see that it is a growth move in the US. AMD has a very small server chipset business and basically zero desktop chipset business.


As far as the license in that link it talks about the BUS license not using ATi chipsets in Intel branded mobos. That means ATi can still design their own mobos.

 

[MarcusL]

As far as the license in that link it talks about the BUS license not using ATi chipsets in Intel branded mobos. That means ATi can still design their own mobos.

Losing the bus license means that ATI cannot produce any chipsets for this Intel processor family. It doesn't matter who builds the motherboard. All LGA775 socket CPUs use the same bus protocol and design criteria which is Intel's proprietary intellectual property.

The license terms have lots of about restrictions about using that knowledge to the advantage of Intel's competitors. Once ATI is owned by AMD, there is no way to separate the Intel work from AMD without spinning off that division into a new company.

 

[sunangel]

DUDE, Violation of FTC? In what aspect of anti trust would intel be breaking? I think i have basic knowledge. Intel could offer ATI whatever they wanted, ATI shareholders first have to agree on the merger with AMD. So they are still two different companies.$162 million is a drop in the bucket for the money that would be changing hands

I believe he may have some truth to his arguments. Based on an article written by Forbes Magazine the FTC probably would block the sales because of an imbalance in the industry. Read the articles and follow the links. You get some good info.

ATI Downgraded On AMD Acquisition

 

[ches111]

Please review the merger between MCI and Verizon to create the now Verizon Business division.

This will remove speculation about what COULD happen...

Intel could in fact make an offer all the way up till the shareholders approve the final agreement.

The penalties are real for pull out of talks. But ATI also has the option of setting up a poison pill type environment to make the taste of a Hostile takeover a little difficult to swallow.

I am well versed in this as I have been through it twice now.

 

[LordPope]

I yield to your expertise....

 

[ches111]

The Anti-trust violations would be "again" difficult to prove and also difficult to litigate. Please see Microsoft. If there ever was a monopoly M$oft is it.

They are still, YEARS later having difficulty in proving/litigating it as they have also diversified into other markets that contain further competition and can lobby to look at the company as a whole which makes it look much less like a monopoly.

Instead of speculating on the Monopoly thing try looking at what is already in front of you and maybe start some analysis that would in fact create a closer to REAL hypothesis.

 

[jaguarskx]

how can this be a attempt to up the price for AMD

this deal is already signed...

it may be a attempt to up ATI's stock price

anyone with even a basic knowledge of ANTI-TRUST .. knows INTEL could never buy ATI.... it wouldnt be allowed

The deal still need to be approved by shareholders of both companies (AMD and ATI). If Intel offers more money for ATI shares, then ATI shareholders could decide to sell their shares to Intel regardless of any executive management signed agreement. If ATI were not a public company, then there would be no need to worry about what the shareholders will do. It is also possible that the shareholders can shoot down both offers and keep ATI as it's own company.

Therefore, as I stated above, AMD would need to offer more money and/or more shares of AMD stock to sway ATI shareholders to sell thier shares to AMD. Shareholders have rights and they make their own decisions.

This is assuming the rumor is true.

Regarding anti-trust never allowing Intel to purchase ATI... That is no definitive if a hypethetical acquisition of ATI by Intel would be denied. Yes, Intel will strengthen it's hold on in the chipset market, but there are still chipset makers out there like nVidia, VIA, and SiS.

Regarding graphics, technically there are currently three major players in the graphics chip industry; ATI, Intel, and nVidia. However, only ATI and nVidia are in the "performance graphics chip" sector of the industry. Intel is merely a low level player in the value segement. If Intel were to acquire ATI, then there will still be two major players in the "performance graphics chip" sector.

 

[NEO3]

It just BS. Soon well see that on the inquirer.

 

[ches111]

Thanks for your contribution!

BS or not the conversation was progressing.. Some replys were well thought out and presented.

Your one line Arnold style response is nothing more than theatrics...

Again thanks for the post.

BOT

Jag I agree completely as my last posts have stated. Even if this is speculation you can see that there are real possibilities.

Something else to consider since the Intel purchase may not be likely!

There are others that might be interested and might throw their own wrench into the works of the merger.

 

[ParoXoN]

Thoughts:

Intel has absolutely no reason to buy ATi other than to take it away from AMD. This would be childish and ultimately pointless.

Intel's forte has always been in the CPU/chipset business and at the moment there's no foreseeable reason for them to diversify and expand beyond this market.

The reason Intel dabbles in GPUs at all is so that they can sell an all-in-one desktop system without reliance on any 3rd parties.


Regarding Anti-Trust:

The performance graphics market is more or less a niche one. There are only two main players in this market at the moment; ATi and nVidia. Aquisition of either by a larger company (say Intel or AMD) would not necessarily indicate a monopoly situation since there would be no immediate benefit to the aquired company (besides the potential for better funding.)



So to conclude:
It would be foolish for Intel to acquire ATi. It would give AMD several million dollars (that ATi would owe) and it would create no end of hassle for Intel.