Is ATI in Play?
July 10th, 2005 Posted in Main Page
A mini-rally in ATI Technologies shares has sparked speculation the graphics chip maker may be a takeover target. TD Securities analyst Andrew Lee believes potential suitors include Broadcom, AMD, Intel, and Texas Instruments. The speculation has been fueled by ATI's failure to introduce a new high-end chip yet. If a deal did materialize, it would be somewhat unique because struggling chip makers usually don't get acquired; they tend to fade away - i.e. S3 Inc. Of the possible buyers, Intel would be the most intriguing given its effort to get more of the graphics market in recent years. You wonder whether Intel would be willing to spend so money on an acquisition rather than continue its in-house development efforts.
