AMD & ATI Unite: A Powerful Combination

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On July 24, 2006, AMD and ATI announced a merger valued at $5.4 billion, aiming to combine AMD's microprocessor technology with ATI's graphics and chipset expertise. This merger is expected to enhance competition in commercial and mobile computing, as well as in consumer electronics, creating a more formidable player in the market. The transaction is anticipated to close in Q4 2006, pending approvals from ATI shareholders and regulatory bodies. The new entity will employ around 14,900 people globally. While the merger promises improvements in AMD's chipsets and potential advancements in Direct Connect Technology, concerns have been raised about the diminishing competition in the graphics market and the implications of further industry consolidation. There is also a desire for Intel to enter the high-performance GPU market to increase competition.
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On July 24, 2006, AMD and ATI announced a plan to join forces, in a transaction that will combine AMD’s technology leadership in microprocessors with ATI’s strengths in graphics, chipsets and consumer electronics. The result is a processing powerhouse: 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.

Headquartered in Sunnyvale, California with centers of excellence around the world, the new company will have a combined workforce of approximately 14,900 employees. This transaction breaks new ground for both companies and is expected to provide increased customer benefits in four key technology areas:

Source: AMD.com
 
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I'm not sure how I feel about this. I do like both companies, but competition the graphics market is starting to get pretty thin and I'm not sure consolidation is going to be a good thing. This should help improve AMD's chipsets, though.
 
I don't care anymore, i think i already bought my last Graphic card since i won't be upgrading to vista, and won't be able to use DX10, which means i won't be able to run the new games, so i won't need to upgrade my card.
 
russ_watters said:
I'm not sure how I feel about this. I do like both companies, but competition the graphics market is starting to get pretty thin and I'm not sure consolidation is going to be a good thing. This should help improve AMD's chipsets, though.

Agreed. However, it could yield some interesting results in Direct Connect Tecnology. Also, to be honest, I'm hoping Intel joins the "extreme" GPU market, so we will have another contender in the arena. By "extreme", I, of course, mearly mean going beyond integrated graphic cards.
 

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