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Merged AMD-ATI monster embarks on monopoly-busting
http://theinquirer.net/default.aspx?article=33230
Intel in the crosshairs, as execs explain themselves By Paul Hales: Monday 24 July 2006, 14:31 BEST MATES AMD and ATI held a conference call today in which the companies' biggest cheeses sought justify their new cohabitation. The 'excited' executives were led by AMD CEO Hector Ruiz who lauded the deal as re-shaping the future of the industry. "We're excited about what we can do together in a market dominated for years by one company," in the first of many digs at arch-competitor Intel. AMD confirmed that much of ATI's operation will be brought in-house, but AMD will remain, "committed to ATI's customers, employers and Canada," said Ruiz. He added that he didn't expect lay-offs "in any significant numbers". Ruiz confessed that AMD had been mulling its best options for a partnership over the past two to three years and it is ATI's expertise in the mobility space as well as its chipset business that makes the firm such a good fit with AMD. The ATI team will play and key role in the joint future of the company he said, adding he was confident that the companies and their respective cultures would integrate well together, their products having occupied "adjacent real-estate on motherboards" for so long. The executives, Ruiz and ATI CEO Dave Orton, along with Dirk Meyer and chief AMD bean counter Bob Rivet were agreed the deal would provide better value to customers and shareholders in both companies. Bob said the merged company would be better positioned to achieve AMD's stated objective to "break the monopoly". AMD's customers had been insisting AMD play a bigger role in the "eco-system" of its mobility and consumer electronics marketplaces, said Meyer. He said he expected the PC to continue to play a central role in both the business environment and the home, suggesting that "non-general purpose" processing units such as GPUs would be integrated into computing platforms much like the floating point co-processor had disappeared over the past ten to fifteen years. Dave Orton confessed to being as excited as anyone. Be said the combined company would be able to look beyond the CPU, GPU and chipset landscapes and increase its penetration into enterprise, mobile computing and consumer electronics sectors. "AMD has great CPUs, we have great GPUs," he said. He reckoned the next stage for the merged company would be to integrate its offerings, combining two or more products to create devices that improve on the sum of their two parts. The new company will achieve "cost synergies" worth $75 million by the end of 2007, increasing to $125 million by the end of 2008. By then the company will be well into its "integration plan", more details on which it promised to deliver soon. The company expects to lose ATI revenues from it work on Intel platforms which bean-counting Bob said was worth about $100 million per quarter, a loss Ruiz is confident the company will make up for. Dave Orton said ATI would continue to deliver Intel chipsets for as long as its customer wanted it to. |
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