Monday, July 24, 2006
Technology giants Advanced Micro Devices (AMD) and ATI Technologies Inc. (ATI) today announced plans to merge. Canadian ATI will be bought by the Californian AMD for 5.4 billion dollars ($4.2 billion in cash and $1.2 billion in stock).
The ATI Technologies Inc. (ATI) acquisition is being funded by a $2.5 billion loan, plus cash and cash equivalents and short-term investment balances of approximately $3.0 billion. That’s total funding of $5.5 billion.
Many people believe Advanced Micro Devices (AMD) to be taking too much of a risk, that AMD is “betting the farm on a deal that might be very questionable.”
The new firm will employ near 14900 people for 7.3 billions dollars earning.The two firms announced they’ll plan no job cutting in the process of merging.