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AMD to Buy Graphics Chip Maker ATI

AMD to Buy Graphics Chip Maker ATI

by , 9:15 AM EDT, July 24th, 2006

Intel's rival in the computer chip market, AMD, plans to purchase the video and graphics chip and card maker ATI. The combined company plans to aggressively pursue the commercial and mobile computing market in 2007. Currently, Apple uses ATI's Mobility Radeon X1600 graphics processor in the MacBook Pro and has used several other ATI products on other Mac models.

AMD agreed to acquire ATI's outstanding common shares for US$4.2 billion in cash and 57 million shares of AMD common stock. The deal still needs some regulatory approvals and ATI shareholder approval. The two companies expect to complete the transaction in the fourth quarter of 2006.

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