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ATI a takeover target?

Unknown-One

Unknown-One

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ATI a takeover target?
7/9/2005 6:59:48 PM, by Ken "Caesar" Fisher

Andrew Lee, an analyst with TD Securities who specializes in ATI, has said that ATI is the possible target of a stock takeover, according to a report at the National Post (subscription required). ATI's stock saw a much-needed boost at the end of the week, fueling speculation that ATI is possibly being courted or even targeted for a hostile buy. The stock hovered around CAN$14.50 for most of the week, but after a dip Thursday to $14.00, the stock shot up to 15.77, up 8.6 percent for the entire week. It had reached a peak of $15.90, which is still a far cry from the $25 range enjoyed before June, when the stock started to tank. Shares hit their 52-week low on July 7, at $13.90.

Takeover rumors started in June, when the company's third quarter results were less than impressive, and were followed by weak projections for the fourth quarter. Rumors indicate that both AMD and Intel are interested in ATI, as are Broadcom and Texas Instruments.

ATI is in a vulnerable position because delays in their next-gen hardware have left many investors expecting to see NVIDIA dominate the rest of this year, including the lucrative holiday spending season. Nevertheless, ATI has announced that the R520 will be entering full production sometime in the fall, and their deal with Microsoft for the Xbox 360 should earn them some scratch. Indeed, while no one expects ATI to tank in the near future à la 3dfx, the market's lack of interest in ATI is apparent, and the time is right for buying stock if you expect to see ATI recover next year. And if you happen to be a large corporation with loads of cash, you might want to buy an awful lot of that stock.
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The source of this article is: http://arstechnica.com/news.ars/post/20050709-5077.html?85999
 
That could be the best thing to happen to ATI. Hostile takeover, fire the poor management, ..., profit.
 
NVIDIA could buy them and put them in their trophy case next to 3DFX :p

If ATI's financials slip any further I could see another company buying them. IBM might be interested to match up to their CPU business, or maybe a Chinese company as they seem to be eager to buy tech companies.

The longer it takes them to get their next card out the more money they lose and the cheaper they will be to buy.
 
Was funny the day nVidia came out with the Riva 128. I said to a friend it will be 2 years till 3dfx dies....and i was right

Now during the 9700/9800 days i said to my same friend ati will be hurting in 2 to 3 years the same way 3dfx was..

So will ati do a 3dfx? Only time will tell...i don't want ati to go down. but shit happens...and if ati's stock keeps going down the shitter. well only time will tell...
 
I think Intel would be a prime suspect to buy ATI because Intel and ATI have been sorta close for a while now and i think i might just laugh if they do it because of how the fan crowd will react to such a thing lol.
 
PRIME1 said:
NVIDIA could buy them and put them in their trophy case next to 3DFX :p
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stupid comment. You say that like a good thing

YEAH let's have NO competition in any shape. Then they can go back to not being that innovative on there video cards again( a la creative labs anyone)

If anything it would be better for an other company that simply wants to own then be more aggressive

Doubt any of this will happen though.
 
They said large corporation with lots of cash and considering ATI has a larger cash reserve than nvidia, I somehow doubt that includes them.
 
[RIP]Zeus said:
Was funny the day nVidia came out with the Riva 128. I said to a friend it will be 2 years till 3dfx dies....and i was right

Now during the 9700/9800 days i said to my same friend ati will be hurting in 2 to 3 years the same way 3dfx was..

So will ati do a 3dfx? Only time will tell...i don't want ati to go down. but shit happens...and if ati's stock keeps going down the shitter. well only time will tell...
Click to expand...

I thought the same way with 3Dfx when they abandoned everyone and stuck with STB to make their cards. Which sucked because I too was a HUGE fan. ATi isn't as stupid. But I don't understand: the 9700/9800 days were good. I know your stance with the x800 cards buuut......huh?!
 
ATI dies and nVidias only reason to innovate would be XGI <_< mabye S3 if they get there heads outta the gutter :p

this bites, its probably a load of bullshit and im kinda hoping after this that they get 6520 ready soon... if there shares are that bad, they need the boost...

im using an nV card right now, dont know if itll change soon, but i still dont want ATi gone :(

and then again, i dont think MS will let their pet die...
 
gordon151 said:
They said large corporation with lots of cash and considering ATI has a larger cash reserve than nvidia, I somehow doubt that includes them.
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Where did you hear that?
http://finance.yahoo.com/q/ks?s=ATYT Total Cash (mrq): 644.39M
http://finance.yahoo.com/q/ks?s=NVDA Total Cash (mrq): 731.51M

$731 million > $644 million :p

But yeah, nvidia and AMD don't have the cash or equity to buy ATI. ATI isn't going anywhere, even if it is bought. Intel and TI are pretty interesting as suitors.
 
Netrat33 said:
I thought the same way with 3Dfx when they abandoned everyone and stuck with STB to make their cards. Which sucked because I too was a HUGE fan. ATi isn't as stupid. But I don't understand: the 9700/9800 days were good. I know your stance with the x800 cards buuut......huh?!
Click to expand...


Back during the 9700/9800 days the FX cards blew ass. but i saw that the 9700/9800 where not a ati made product. But someone else's

For some gut feeling i knew if ati actully built there own core. they would have major problems and have a very hard time recooping anything back
 
hopefully they dont go under...they have made goood cards over the years... i guess it is their fault for being slack on release dates...but i guess patience is a virtue and they are teaching us a lesson ;)
 
gordon151 said:
They said large corporation with lots of cash and considering ATI has a larger cash reserve than nvidia, I somehow doubt that includes them.
Click to expand...

Nothing burns through a pile of cash like production problems.
 
Netrat33 said:
I thought the same way with 3Dfx when they abandoned everyone and stuck with STB to make their cards. Which sucked because I too was a HUGE fan.
Click to expand...
3dfx purchased STB because at the time STB was nvidia's largest customer. STB manufactured cards for the majority of OEM computer makers. The purchase was meant to hurt nvidia and get 3dfx chips into OEM system. It didn't work.

3dfx's purchase of STB was funny because that's partially what killed them. It was expensive to purchase and run the factory, and it cut down on market share by running off other manufacturers.
 
Netrat33 said:
stupid comment. You say that like a good thing

YEAH let's have NO competition in any shape. Then they can go back to not being that innovative on there video cards again( a la creative labs anyone)

If anything it would be better for an other company that simply wants to own then be more aggressive

Doubt any of this will happen though.
Click to expand...

I somewhat agree, though ATi has never really "been there for me" whenever I upgraded, so my experience with them has only been with things like the GameCube's GPU (a POS without AA or AF) and a 9200 that couldn't even display 1680x1050 right (my old GeForce3 did it without any tweaking.)

Whatever. Every company goes through financial troubles. As long as they can make their wonderful chipsets (hahaha) and their IGP's for OEM's, they shouldnt have real issues.

jebo_4jc said:
WTF?
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ATi didnt make the R3xx core. A company they bought named ArtX did.
 
robberbaron said:
ATi didnt make the R3xx core. A company they bought named ArtX did.
Click to expand...

This may be what's hurting them this time around. They have just been updating the original ArtX chip for several years now and this may be there first real attempt at making their own new 3D chip.
 
robberbaron said:
ATi didnt make the R3xx core. A company they bought named ArtX did.
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yeah, 70 ppl from the former artx owned nvidia, and the rest of the ati staff could take a long holiday until they had do do some work on the 520.

edit:
hmm, i think that the artx people joined in on that holiday also since r300=flipper anyway, right ?
 
What about the xbox360? You guys don't think thats going to help then out of this?
 
PRIME1 said:
This may be what's hurting them this time around. They have just been updating the original ArtX chip for several years now and this may be there first real attempt at making their own new 3D chip.
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why would that be a problem ? the people from artx still works for ati.
 
I said ATI was in trouble a month ago and it became a flame war. I guess im not that far off after all!!!:rolleyes:
 
Spank said:
why would that be a problem ? the people from artx still works for ati.
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Something is apparently a problem.

I think they just tried to be technology leader for once, by jumping into 90nm. nVidia has been the leader in technology for a long time (not necessarily performance, but you can't deny that nVidia isn't the leader in this aspect.) and ATi would be totally "showing them up" by making a successful 90nm gpu before nVidia. Just give ATi a few months to a year, I'm sure they'll have something to counter the 7800GTX or 8xxx with.
 
Spank said:
why would that be a problem ? the people from artx still works for ati.
Click to expand...
because the ATI west team doesn't design every chip. The ATI east team hasn't released any PC graphics chips since the Radeon 8500. ATI west (ArtX) made the R300 and R420 (R400 by ATI east was cancelled).

----
Intel could pick up ATI cheaply and the ATI Santa Clara office is local. That would also get Intel back in the console business.
 
By the time ATI does release the 520 core it may be to little to late. NVIDIA will have a great lead on them and they show no signs of slowing down!
 
robberbaron said:
Something is apparently a problem.

I think they just tried to be technology leader for once, by jumping into 90nm. nVidia has been the leader in technology for a long time (not necessarily performance, but you can't deny that nVidia isn't the leader in this aspect.) and ATi would be totally "showing them up" by making a successful 90nm gpu before nVidia. Just give ATi a few months to a year, I'm sure they'll have something to counter the 7800GTX or 8xxx with.
Click to expand...
yah cheerin me up :D
 
pxc said:
Intel could pick up ATI cheaply and the ATI Santa Clara office is local. That would also get Intel back in the console business.
Click to expand...

This would burn IBM's ass. The just lost Apple but are thinking, hey at least we got all 3 consoles......

[ibm voice] what do you mean the Nintendo and Xbox2 now say Intel inside? Bastards! [/ibm voice]
 
If the rumors are correct I think ATI tried to jump the gun to fast putting everything in plus the kitchen sink in a brand new chip on a brand new process for graphics cards.

Usually ATI tests out new manufacturing processes with their midrange or value cards, which have less transistors, to prepare the process for their high-end cards.

If the rumors are true ATI went straight to 90nm with their high end card first. And not just that, but rumors say 32pipes, fp16 HDR with AA support, SM 3.0, etc.... If that's true, that sure is a lot of stuff to cram into a new process you aren't familiar with using yet.

Maybe they should have stuck with a 24 pipe card, their pipes and rops are tied together already I believe, so it'd be 24 pixel pipes/24 rops, that would have saved them some transistors there. I think a 24 pipe card would have matched up nicely with NV's card. They just might have been a little too ambitious with this chip, if the rumors are true.

Note that my analysis is based on speculation and rumor, no facts.
 
pxc said:
----Intel could pick up ATI cheaply and the ATI Santa Clara office is local. That would also get Intel back in the console business.
Click to expand...

I can only imagine how much profit Intel would be making if they got ahold of ATI as well after just sealing the deal with Intel CPU's in Apple machines. The Apple deal was huge for Intel already and its looking to be huge the rest of us as well because with Intel CPU's in Apple systems now there will very likely be a push by Apple to release a PC version of OSX to compete against Microsoft and Windows. Apple could steal away a huge market share in the OS department from Microsoft easily and could give Longhorn a run for its money.
 
If ATI was truly in trouble then I would think they would have gone ahead and done soemthing by now. However I think it is safe to speculate that they know somethign that we don't and they are safe. Perhaps they know the consoles are going to bring in a butt load of cash...

But all we know is they are loosing money *now*.
In the near future they could gain mad money with the realease of a new revolutionary chip that everybody and their mama will buy.
 
Sounds alot like history...

Nvidia Released the Geforce Series, and nothing could stop it, then the Geforce 2, 3, and 4 Series came out, and STILL nothing could stop it. Maybe the 8500 touched its heals for a bit, but the 4600 was unstoppable. The low and behold, out from the shadows, ATi pulls a miracle and brings the 9700 out. Unstoppable, even after the FX series was released, unstoppable till the 6 series came to time.

I think to many people are counting their chickens before they hatch. ATi has been at this game for a very long time (13+ years I believe) If anything, nvidia will rule for a bit again, like the Geforce 2-4 series, then ATi, or some other company, will pull out a 9700.
 
Brent_Justice said:
If the rumors are correct I think ATI tried to jump the gun to fast putting everything in plus the kitchen sink in a brand new chip on a brand new process for graphics cards.

Usually ATI tests out new manufacturing processes with their midrange or value cards, which have less transistors, to prepare the process for their high-end cards.

If the rumors are true ATI went straight to 90nm with their high end card first. And not just that, but rumors say 32pipes, fp16 HDR with AA support, SM 3.0, etc.... If that's true, that sure is a lot of stuff to cram into a new process you aren't familiar with using yet.

Maybe they should have stuck with a 24 pipe card, their pipes and rops are tied together already I believe, so it'd be 24 pixel pipes/24 rops, that would have saved them some transistors there. I think a 24 pipe card would have matched up nicely with NV's card. They just might have been a little too ambitious with this chip, if the rumors are true.

Note that my analysis is based on speculation and rumor, no facts.
Click to expand...

Thanks Brent. The fact that you guys don't have one of the R520s yet says a lot to me about it's being a long way from available.

Can you comment on whether your in the process of testing Crossfire X850s yet? IMO that was a TOTAL paper launch, to at least hear you guys have working review samples would dispel some of that stigma. (and I don't think it would violate your NDA to say something like, "I've used Crossfire".
 
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