| Q1: |
What motivated this transaction?
|
| Q2: |
What are the financial terms of the agreement?
|
| Q3: |
When will the new company be up and running?
|
| Q4: |
What will the combined company operate as?
|
| Q5: |
Where will the new company be headquartered?
|
| Q6: |
What advantages does this transaction bring to the customer?
|
| Q7: |
How many employees does the combined company expect to have in total?
|
| Q8: |
What can you accomplish with this deal that you couldn't with your former strategy?
|
|
|
|
|
| Q1: |
What motivated this transaction |
|
|
| A1: |
This transaction is born of a mutual recognition
that by combining our efforts we can be one of the industry’s
leading processing powerhouse. The marriage of AMD and ATI’s
best-in-class computing, graphics, digital media and processing
technologies will result in more innovative and more complete customer-focused
solutions. AMD and ATI complement each other’s strengths
across technologies, markets, manufacturing and geographies. |
|
|
| Q2: |
What are the financial terms of the agreement? |
|
|
| A2: |
Under the terms of the transaction, AMD will acquire all
of the outstanding common shares of ATI for combination of approximately
$4.2 billion of cash and 57 million AMD shares of common stock
based on ATI’s outstanding common stock on July 21, 2006.
Based upon the closing price of AMD common stock on July 21, 2006
of $18.26 per share, the consideration for each outstanding share
of ATI common stock would be $20.47, with approximately eighty
percent of the consideration in the form of cash. |
|
|
| Q3: |
When will the new company be up and running? |
|
|
| A3: |
We expect to close in the fourth quarter of 2006.. Once the
acquisition is closed, we will rapidly move to integrate the
operations of the two companies.
|
|
|
| Q4 |
What will the combined company operate as? |
|
|
| A4: |
The combined company will operate as AMD. |
|
|
| Q5: |
Where will the new company be headquartered? |
|
|
| A5: |
The combined company will be headquartered in
Sunnyvale, CA, with centers of excellence in Silicon Valley, Austin,
and Markham,
Ontario, as well as sales, design and manufacturing operations
worldwide.
|
|
|
| Q6: |
What advantages does this transaction bring to the customer? |
|
|
| A6: |
This acquisition will enable the combined company to enable
the delivery of outstanding total platform solutions with better
time-to-market, unified support and highly optimized technology
for our customers.
|
|
|
| Q7: |
How many employees does the combined company expect to have in total? |
|
|
| A7: |
The combined company will have approximately 14,900 employees.
|
|
|
| Q8: |
What can you accomplish with this deal that you couldn't with your former strategy? |
|
|
| A8: |
With this acquisition, AMD will be well positioned to
drive a unified platform and solution vision that keeps pace
with media
and data processing innovations, with a presence in the consumer
digital media market.
|
|
|
|
|
)
