AMD Buys ATI

Several rumors have circulated lately regarding AMD’s acquisition of graphics chipmaker ATI. The board of directors at AMD have now approved the acquisition; an investment banker who was present confirms that. AMD executives were also seen at ATi headquarters at Markham, Ontario.

It will cost AMD 5,6 billion to buy ATI, analysts expect AMD to offer between $21 and $23 for the ATI stock on Monday. The stock currently trades at $16,21 at NYSE.

While it could be an advantage for AMD to have a graphics department like ATI, many analysts don’t think it’s any good idea, practically and financially. AMD could lose support from Nvidia, and ATi could lose the good relationship with Intel. Intel has already announced that their next motherboards will not be using ATI technology as previous versions have.

Read (GlobeAndMail)