The rumors have been around for long and this weekend we received information that seemed to strengthen the idea of a merger between processor manufacturer AMD and graphics circuit manufacturer ATI. Today, July 24, AMD has officially made a press release where it confirms the acquisition of ATI. The acquisition is expected to come through during the fourth quarter of 2006 and will cost AMD about $5.4 billion. Even if we today can’t prediect what this will actually mean to the PC market it’s not surprising that AMD will do everything it can to gain as much as possible from this merger. In its press release it has focused on four markets where we, the consumers, will see some clear improvements from the merger.
Commercial Clients
As a combined company, AMD and ATI will develop commercial platforms that deliver simplicity, stability, and manageability in graphics-rich and mobile environments.
Mobile Computing
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.
Consumer Digital Media
As a combined company, AMD and ATI will empower users to create and experience rich, immersive digital entertainment across multiple consumer devices, including PCs, handhelds, and digital televisions.
High-Growth Markets
As a combined company, 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.
How well this will fan out is something we can just guess, but this might just be what AMD needs now that Intel seems to be heading towards an especially bright season. At The Inquirer, Tech Gage and TechReport they’ve published articles with their views and thoughts on what this deal could mean to the market and especially to us consumers. Without a doubt, one of the biggest acquisitions in a very long time, and will most likely be so for quite a while.
“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.”
