AMD and ATI to ask shareholders for merger approval

ACCORDING to an extraordinarily reliable source, AMD and ATI will on Monday pitch their shareholders with the proposition that the two companies merge.

It's an interesting idea - AMD doesn't quite have the shekels in the bank to buy ATI outright. The deal, subject to shareholder approval, may still founder.

If the deal goes through, Nvidia and its SNAP partnership with AMD will definitely be reconsidered and Nvidia will all of a sudden become a super underdog compared to the new juggernaut. It may also stop the endless bickering between ATI and Nvidia that's entertained the world+dog for some years now.

AMD will be glad to get its hands on ATI's very profitable handheld division. The firm needs good chipsets and will also benefit from a great consumer digital chip segment. It will also like the integrated graphics business and will now get a piece of this action. µ

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