ATI is going to be bought?

Written by Wil Harris

July 11, 2005 | 09:06

Tags: #acquisition #canada

Companies: #ati #texas-instruments

Wow, here's some funny news. According to the Canadian National Post ATI's share price has risen a little, after dipping last week on the announcement that R520 was going to be delayed.

The share price rally has lead to speculation that ATI is a ripe target for acquisition. Rumoured buyers include Texas Instruments, Intel and AMD.

Frankly, we could never see Intel or AMD buying up ATI. Both firms have strong relationships with NVIDIA, and one of them buying ATI would inevitably lead to a split, where Nvidia only developed chipsets for AMD and ATI only for Intel, or vice versa. Can you imagine Intel buying ATI and then letting it create AMD chipsets?

Of course, graphics cards might remain universal. But do you really want Intel Inside your graphics card, too?

Of course, the flipside is that any one of those three firms could bring a lot of benefits to ATI - better manufacturing plants, more engineers, more expertise. An alliance could really help the Canadian firm fight back against Nvidia, who are currently dominating the next-gen market with the 7800, which currently faces no competition from ATI.

The front-runner, then, has to be Texas Instruments. But frankly, we think ATI is just going to keep going the way it has. It's made great progress over the last couple of years, and the time-delay on R520 isn't going to destroy it, just like GeForceFX didn't destroy NVIDIA. Whilst ATI are sitting around waiting for R520 to come back from the factory, you can bet they're using all their spare time to calculate some very cunning plans.

What do you think will happen? Let us know!
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