Here's a bit of a melon scratcher, AMD
Advanced Micro Devices plans to acquire graphics chipmaker ATI Technologies
for $5.4 billion in cash and stock, the company said Monday. Under terms of the deal, AMD will acquire all of the outstanding common shares of ATI for $4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21. AMD, the No. 2 supplier of processors, will use the purchase of Canada-based ATI to expand its product mix and its market share as it battles No. 1 Intel.
The full press release on this merger is posted here: AMD and ATI to Create Processing Powerhouse
July 26 2006 Rumors: Fidelity Investments has caught wind that
Intel may try a hostile takeover and make a
counter offer for ATi.
Updates as of July 25, with analyst opinions from Digitimes and the Taiwan tech sector.
Analysts are having a field day with this announcement, and the general opinion is that this merger will be a complicated on given ATIs agreements with Intel over certain technologies.