AMD faces loss in value of ATI assets

By Justin Mann on December 12, 2007, 2:51 PM
In what comes as a surprise to no one, AMD is prepared to take a financial hit as they will write-down the value of assets they acquired when they took over ATI. Without mentioning specific dollar amounts, AMD alluded to the devaluation being large, which is bad news for the already struggling chip giant.

Whether or not this will change their business plan and plans for future GPUs isn't mentioned, though obviously they now have more incentive than ever to take back marketshare from both Intel and Nvidia. Many analysts have stated that AMD vastly overpaid in acquiring ATI, and in doing such the write-off was somewhat predicted.

User Comments: 4

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PanicX said:
Hmm.. I'm not sure I'm understanding this very well. Basically, they bought a lot of technological assets when they acquired ATI, which is now a year older and worth less than they paid for it.Is this news? I mean, to anyone that has ever bought any new technology, its simply understood that with in months, maybe even weeks, its going to be outdated and worth less than you paid. In fact, any company with a functioning accounting staff will claim "depreciation" on all their assets to receive a healthy tax deduction come filing season.
canadian said:
I blame them stopping the development of super high end video cards.
windmill007 said:
This really hurts..I use to love AMD and ATI. But now as I'm sure most people are moving to NVIDIA for the graphics. ATI isn't even close especially with the two new cards NVIDIA put out. Plus AMD processors are still behing even with the new Phenom or whatever. Intel is still riding high. I know my next processor will be intel for the first time since I could build computers and the only thing I wish intel and nvidia could get a SLI deal going. i really want that on one of those new intel boards. I hope AMD can pull somethin outta there hat soon but it doesn't look good at all!
Nirkon said:
amd/ati can't handle the competition, which is both good and bad for us.The good - prices are really low, the only reason we can build a super-cheap PC that can GAME good is AMD and ATI.Bad- Intel prices going up, competition = faster technology upgrades.
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