The big news of the morning: Microprocessor manufacturer AMD has announced the acquisition of graphics chipset manufacturer ATI (the AMD press release calls it a “merger” and a “partnership”, but the wire reports unambiguously describe it as a buyout) for $5.4 billion:
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.
What this means with regard to future product offerings from the combined company remains to be seen. Discuss!