why did ati sell itself to amd?

adarw · September 19, 2021

was ait going bankrupt or something? was there a reason to sell to amd?

Levent · September 19, 2021

It seems you have no clue on how corporate world works. If you were to check wikipedia page, you would have seen:

Spoiler

The acquisition of ATI in 2006 was important to AMD's strategic development of its Fusion generation (APUs) of computer processors, which integrated general processing abilities with graphics processing functions within a chip.

...

On July 24, 2006, a joint announcement revealed that Advanced Micro Devices would acquire ATI in a deal valued at $5.6 billion. The acquisition consideration closed on October 25, 2006, and included over $2 billion financed from a loan and 56 million shares of AMD stock. ATI's operations became part of the AMD Graphics Product Group (GPG),and ATI's CEO Dave Orton became the Executive Vice President of Visual and Media Businesses at AMD until his resignation in 2007. The top-level management was reorganized with the Senior Vice President and General Manager, and the Senior Vice President and General Manager of Consumer Electronics Group, both of whom would report to the CEO of AMD. On 30 August 2010, John Trikola announced that AMD would retire the ATI brand for its graphics chipsets in favor of the AMD name.

There is a price for anything in the corporate world, it made sense for AMD to buy ATI and it apparently made sense for ATI shareholders to sell the company to AMD. Owners of ATI Technologies were given shares in AMD and also cash.

adarw · September 19, 2021

2 minutes ago, Levent said:

It seems you have no clue on how corporate world works.

i mean that is mostly correct....

3 minutes ago, Levent said:

Hide contents

The acquisition of ATI in 2006 was important to AMD's strategic development of its Fusion generation (APUs) of computer processors, which integrated general processing abilities with graphics processing functions within a chip.

...

On July 24, 2006, a joint announcement revealed that Advanced Micro Devices would acquire ATI in a deal valued at $5.6 billion. The acquisition consideration closed on October 25, 2006, and included over $2 billion financed from a loan and 56 million shares of AMD stock. ATI's operations became part of the AMD Graphics Product Group (GPG),and ATI's CEO Dave Orton became the Executive Vice President of Visual and Media Businesses at AMD until his resignation in 2007. The top-level management was reorganized with the Senior Vice President and General Manager, and the Senior Vice President and General Manager of Consumer Electronics Group, both of whom would report to the CEO of AMD. On 30 August 2010, John Trikola announced that AMD would retire the ATI brand for its graphics chipsets in favor of the AMD name.

There is a price for anything in the corporate world, it made sense for AMD to buy ATI and it apparently made sense for ATI shareholders to sell the company to AMD. Owners of ATI Technologies were given shares in AMD and also cash.

ohh that makes sense thanks!

Gaijin · September 19, 2021

14 hours ago, Levent said:

It seems you have no clue on how corporate world works. If you were to check wikipedia page, you would have seen:

Reveal hidden contents

The acquisition of ATI in 2006 was important to AMD's strategic development of its Fusion generation (APUs) of computer processors, which integrated general processing abilities with graphics processing functions within a chip.

...

On July 24, 2006, a joint announcement revealed that Advanced Micro Devices would acquire ATI in a deal valued at $5.6 billion. The acquisition consideration closed on October 25, 2006, and included over $2 billion financed from a loan and 56 million shares of AMD stock. ATI's operations became part of the AMD Graphics Product Group (GPG),and ATI's CEO Dave Orton became the Executive Vice President of Visual and Media Businesses at AMD until his resignation in 2007. The top-level management was reorganized with the Senior Vice President and General Manager, and the Senior Vice President and General Manager of Consumer Electronics Group, both of whom would report to the CEO of AMD. On 30 August 2010, John Trikola announced that AMD would retire the ATI brand for its graphics chipsets in favor of the AMD name.

There is a price for anything in the corporate world, it made sense for AMD to buy ATI and it apparently made sense for ATI shareholders to sell the company to AMD. Owners of ATI Technologies were given shares in AMD and also cash.

'They were a public company' is a far nicer way to put this.

Going public is almost always the problem. Then, the focus shifts from the customer.

AlwaysFSX · September 19, 2021

15 hours ago, Levent said:

It seems you have no clue on how corporate world works. If you were to check wikipedia page, you would have seen:

Hide contents

The acquisition of ATI in 2006 was important to AMD's strategic development of its Fusion generation (APUs) of computer processors, which integrated general processing abilities with graphics processing functions within a chip.

...

On July 24, 2006, a joint announcement revealed that Advanced Micro Devices would acquire ATI in a deal valued at $5.6 billion. The acquisition consideration closed on October 25, 2006, and included over $2 billion financed from a loan and 56 million shares of AMD stock. ATI's operations became part of the AMD Graphics Product Group (GPG),and ATI's CEO Dave Orton became the Executive Vice President of Visual and Media Businesses at AMD until his resignation in 2007. The top-level management was reorganized with the Senior Vice President and General Manager, and the Senior Vice President and General Manager of Consumer Electronics Group, both of whom would report to the CEO of AMD. On 30 August 2010, John Trikola announced that AMD would retire the ATI brand for its graphics chipsets in favor of the AMD name.

There is a price for anything in the corporate world, it made sense for AMD to buy ATI and it apparently made sense for ATI shareholders to sell the company to AMD. Owners of ATI Technologies were given shares in AMD and also cash.

I hope some people held on to their shares lol

mariushm · September 19, 2021

15 hours ago, adarw said:

was ait going bankrupt or something? was there a reason to sell to amd?

AMD needed the graphics patents and the actual gpu cores for integrated graphics, and back then if my memory is correct intel was killing in laptops with centrino and core processors with integrated graphics ... so amd had to do something or they risked being stuck without graphics.