my life after graduate: AMD-ATi Merger??

Thursday, June 01, 2006

AMD-ATi Merger??

AMD has released on the world the AMD Live PC and the AMD Live Entertainment Suite, their answer to the Intel's current position in home entertainment with Viiv. It's a similar program to Viiv, but offers some key differences that may help lure many companies to them, such as the lack of particular components being a requirement for a label:

AMD's focus is a bit different, being oriented around integration into existing environments rather than the placement of a PC in a living room as a media hub. The “Live Entertainment Suite” is part of that, which includes an on-demand streaming service that apparently can be accessed via the web for small home networks, with up to 25GB of data. As early as next week, demos will begin surfacing, with plans for the actual rollout sometime this year. Viiv hasn't made a huge splash yet, so AMD still has some time to get in the same game.

What I want to focus today is the merge between AMD-ATi. Is it true?
Forbes reports 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 byAMD to significantly increase capacity over the next few-years," wroteanalyst Apjit Walia in a note to investors Wednesday. "We believe ATIis a rare-buy in the semiconductor space right now given the near-termtie-up dynamics."

With the release of AMD Live!, AMD seem set to expand their horizons and tackle Intel in the desktop space full on this year. Dell are due to ship machines with AMD chips in them and a coupling with ATI could mean some interesting prospects for AMD for gaming and performance based systems.

Intels june quarter isn't going too well with revenues down 10% and the next quarter is set to look worse. As Intel starts cutting chip prices to gain market share back will this help in the long term if a partnership with ATI is on the horizon?

We have contacted both companies for an official response but at the time of writing have received no official response regarding the rumours.


mEsoL said...

AMD & ATi have officially announced their plans to merge.

The rumour mill had been running for a good month or two about AMD planning to merge with ATi.

AMD have announced their merger under a "Processing Powerhouse" slogan.

According to AMD, the companies will become a new competitor, better equipped to drive growth, innovation and choice for its customers in commercial and mobile computing segments and in rapidly-growing consumer electronics segments. The transaction, valued at US $5.4 billion, is expected to close in Q4 2006 subject to approval by ATI shareholders, court approval, regulatory approvals and other customary closing conditions.

AMD and ATI will develop commercial platforms that deliver simplicity, stability, and manageability in graphics-rich and mobile environments. As a combined company, AMD and ATI will advance mobile computing by delivering integrated platforms that are designed to extend battery life while optimizing graphics and media processing. AMD and ATI will deliver highly-integrated, low-cost, power-efficient solutions to meet the expanding demands of billions of new users in emerging markets.