AMD joins forces with ATI
From Wikinews, the free news source you can write!
Current revision (unreviewed)
Jump to: navigation, search

Monday, July 24, 2006

Technology giants Advanced Micro Devices (AMD) and ATI Technologies Inc. (ATI) today announced plans to merge. Canadian ATI will be bought by the Californian AMD for 5.4 billion dollars ($4.2 billion in cash and $1.2 billion in stock).


The ATI Technologies Inc. (ATI) acquisition is being funded by a $2.5 billion loan, plus cash and cash equivalents and short-term investment balances of approximately $3.0 billion. That’s total funding of $5.5 billion.


Many people believe Advanced Micro Devices (AMD) to be taking too much of a risk, that AMD is "betting the farm on a deal that might be very questionable."

The new firm will employ near 14900 people for 7.3 billions dollars earning. The two firms announced they'll plan no job cutting in the process of merging.

Sources

* Press Release: "AMD & ATI: A Processing Powerhouse". AMD, July 24, 2006

* Andrew Ross Sorkin "A.M.D. to Acquire ATI Technologies". New York Times, July 24, 2006

* Chris Hall "Discussing the AMD-ATI Deal: Q&A with AMD EVP". DigiTimes, July 25, 2006