AMD to Buy ATI for $5.4 Billion

Processor maker Advanced Micro Devices has announced plans to pay $5.4 billion for graphics chip maker, ATI Technologies. The move is seen as a way to put AMD on a more competitive footing with rival Intel, who has been seeing good reviews for its forthcoming Core 2 Duo chips. Under the terms of the merger, AMD will pay $4.2 billion in cash and 57 million shares of its own stock to acquire all of ATI's outstanding stock. What will this mean for PC gaming? Time will tell...