AMD Hires Bank to Arrange Sale or Pursue other Alternatives
A report from Reuters states that Advanced Micro Devices has hired JPMorgan Chase & Co to explore options, which could include a sale, as the chipmaker struggles to find a role in an industry increasingly focused on mobile and away from traditional PCs, according to three sources familiar with the situation. Sources told Reuters on Tuesday that an outright sale of the company is not a priority, and other options for AMD could include a sale of its portfolio of patents.
AMD said in an email to Reuters, "AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly-differentiated technology assets is the right approach to enhance shareholder value. AMD is not actively pursuing a sale of the company or significant assets at this time."
One of Silicon Valley's oldest chipmakers, AMD is laying off engineers and some analysts are concerned it may not find new markets for its chips in time to reverse a declining cash reserve.
AMD's shares have fallen more than 60 percent this year, giving it a market value of about $1.4 billion. It also has long-term debt and capital lease obligations of about $2 billion.
Microsoft Corp, Google Inc, Samsung Electronics, Intel Corp and even Facebook Inc have been suggested by Wall Street analysts as potential suitors that could benefit from some of AMD's chip business, including its graphics division, PC processors and server chips.
Others say AMD's most valuable asset may be its deep bench of engineers or its patents.
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That's what the last uber driver was all about then i guess, a big 'see ya'll laters!, Fun while it lasted!' type.
Hope not though.
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When Bulldozer was released we all saw this coming.
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In what way did you see this comin`?
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IMO no, when one company controls the market, goverments create controls and such, thus limiting their price to a reasonable quantity.
While i don't want AMD to disappear, but IMO a weak AMD for the enthusiast market, its even worse. Just see what intel did with 2500K's, they are like 20€ more expensive than on release.
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That doesn`t sound good
This can be both bad news and good news. If AMD desides to sell and the company that buys them doesn`t want a role in the pc market, that leaves us with only Intel, and than Intel could price their processor as they whish. I don`t wanna even mention the graphics industry. Good news if the company that buys them desides to invest in the processor developement section, cuz I think the main reason for AMDs low performing processor is their budget in developement. They have lost a lot of ground after Intel introduced the Core 2 lineup, since then it seems that AMD can`t get back on it`s feet. Maybe just a miracle can save them.