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AMD and ATI Confirm Merger Plans; the buyer will pay 4.2 billion in money. Doll.
AMD and ATI Formally Announce Merger Plan. The amount of the transaction is named. It is about 5.4 billion. Doll. The merger is said to incorporate “AMD’s technology leadership in microprocessors and ATI’s edge in graphics, chipsets and consumer electronics.”. What results do companies expect?? The official announcement also answers this question: “A new, larger company will emerge to bring growth, innovation and choice to its consumers, especially in the commercial and mobile computing segments and the fast-growing consumer electronics market.”. Of course, this is just a general declaration, but a more specific benchmark is also named: AMD plans to release customer-centric platforms in 2021. Their benefits can be used by those consumers who want to participate in the development of specialized solutions.
The AMD acquisition will certainly help the company move towards more integrated solutions in key market segments. In 2021 and beyond, AMD intends, in the language of a press release, “to go beyond current technology configurations to transform processing technologies using platforms that integrate microprocessors and GPUs.”. Thus, the company expects to meet the growing demand for performance in the field of not only general-purpose computing, but also multimedia computing, which is characterized by a focus on data, in particular, graphics. In this regard, an interesting comment from a Microsoft spokesman: “Windows Vista will provide incredible advancements in the user experience as a result of progress in integrating graphics and performance. We are thrilled about the potential AMD and ATI can jointly realize to improve the Windows Vista user experience.”
Pictured above are ATI CEO Dave Orton and AMD CEO Hector Ruiz announcing plans to merge the two companies.
As for the technical details of the deal, they are as follows: AMD will acquire ATI shares, paying 4.2 billion. Doll. money (this part will include the amount received by AMD under the agreement on the issuance of a cash loan in the amount of 2.5 billion. Doll., concluded with Morgan Stanley Senior Funding). In addition, 57 million will be spent on payment. AMD shares. The deal has already been approved by the boards of directors of the companies. Now the turn for the approval of ATI shareholders and legal formalities. The deal is expected to close in the fourth quarter of this year.