AMD Admits it Overpaid for ATI
December 13 Trevor Flynn
Subscribe to our FULL RSS feed!
Guess we can file this one in the “Well Duh!” pile.
AMD has officially admitted that it overpaid for it’s purchase of ATI. Though the 3.2 Billion dollar allocation for “goodwill” (e.g. the value of the ATI brand - almost three times the value of ATI’s product technology) paid as part of the purchase was questioned by many at the time but AMD was confident it could revolutionize the GPU industry.
Over a year since the date of the purchase back in October 2006, AMD has still yet to release any compelling chipset technologies which was cited as one of the main reasons for the purchase. What they have accomplished however is over 1.6 billion US in losses through September and a 54 percent stock price drop since the start of the year.
Now admittedly the rise on Conroe and the resurgence of Nvidia have played a part in AMD’s current woes, but one has to wonder if a change in upper management is now imminent.
Filed under: PC Hardware
Tags: AMD, Processors, Video Cards
No comments yet.