AMD to buy ATI Technologies

Posted by dinotrac on Jul 24, 2006 4:45 PM EDT
New York Times (free registration required); By Andrew Ross Sorkin
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AMD has agreed to buy ATI Technologies for a $5.4 billion in cash and stock.

The purchase, which gets AMD into the market for high-end graphics chipsets, as well as chipsets for the mobile phone market, is expected to make AMD more competitive with Intel.

The deal has special interest to Linux supporters as AMD has long been a favorite of the Linux community while ATI has been a something of a pariah, even though it does offer binary Linux drivers

In light of recent stories about the price-performance superiority of Intel's upcoming Core 2 Duo processors, the following line seems especially interesting:

"A.M.D.'s overall gross profit margins, which fell in the latest quarter to 56.8 percent from 58.5 percent in the prior quarter."

Looks like AMD has a little room to maneuver on price.

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PR and Mirror Inhibit 14 2,653 Jul 28, 2006 11:24 AM
linus' comment on the merger henke54 0 2,380 Jul 24, 2006 11:29 PM

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