Admits it, at last
Last modified on Friday, 14 December 2007 03:55
AMD has finally admitted that it paid too much for ATI.
AMD paid $5.6 billion for the graphics chipset maker and got itself into deep financial problems as a result.
In a filing with the U.S. Securities and Exchange Commission the company indicated it will have to write down the value of the goodwill estimate it attached to ATI when it bought the company in October 2006.
It does not know how much it overpaid. AMD said it does not currently know how big the charge will be. The ATI price included a $3.2 billion allocation for goodwill, which was nearly three times the value of product technology that ATI had already developed and was working on in its laboratories.