AMD buys ATI.

Simple beyond the lines.

Read further from the news headlines.

Apple/Intel, Micrsoft/IBM ( co-existence of ATIMD), SONY /IBM ( NVIDIA), DELL/HP/GATEWAY/OFF SHELF CREATORS? ????????.

I dont see AMD in above list. If x86 has to survive with PC dying market, it has to have interoperable and seamless X86 extension into consumer market. Thats where AMD picked ATI for all other left x86 players to fight for the upcoming digital consumer market.
Its industry driven. Manufacturing synergies and advantages ( IBM/AMD - BIG + for Microsoft). Can xbox360 work with PCs with ATI graphics cards seamlessly as the interoperability of two processor families from same company wont be question?

Also, after looking at ATI website, its very obvious that AMD didnt buy it for GPU, it bought them for handheld and TV market. The company has impressive clientiel and would like to synergies of AUDIO/VIDEO streaming, editing across all technology products related to customers.

HECTOR RUIZ comes back to work with Motorola, one of major ATI clientiel, which he left to resurrect AMD. Life comes full circle sometimes. :)

Its ironical, Intel left the communication market after investing 10 billions dollars over 10 years and AMD is entering it now. I think its right time, right place and right move.

Analysts are idiots to figure this out. They can't think beyond quarters and they suffer with short term vision problem.