Jump to content
Sign in to follow this  
Fates

AMD puts a price tag on ATI

Recommended Posts

SAN JOSE, Calif. – Advanced Micro Devices Inc. acknowledged Wednesday it overpaid in its US$5.6 billion acquisition of Canadian graphics chip maker ATI Technologies Inc., adding to the deepening financial woes of the slumping semiconductor company.

 

Sunnyvale-based AMD, the world's No. 2 maker of microprocessors behind Intel Corp., said in a filing with the U.S. Securities and Exchange Commission it will have to write down the value of the goodwill estimate it attached to Markham, Ont.-based ATI when it bought the company in October 2006.

 

AMD said it does not currently know how big the charge will be.

 

Goodwill refers to the value of intangible assets such as a company's reputation or influence within an industry, or even employee morale, all of which are believed to influence its ability to drive future sales.

 

AMD's final purchase price for ATI included a $3.2 billion allocation for goodwill, nearly three times the value of product technology that ATI had already developed and was working on in its laboratories, according to AMD's regulatory filings.

 

AMD bought ATI to bolster the graphics capabilities of its chips and add valuable "chipset" technologies to its product lineup. Chipsets are responsible for sending data from the microprocessor to the rest of the computer.

 

AMD, until that point, focused primarily on microprocessors, which are the brains of computers

 

 

You can read the rest here: http://www.thestar.com/article/285252

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy, and We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..