AMD is finished: Bank hired to explore options; sale of assets possible
216 replies, posted
[quote](Reuters) - Advanced Micro Devices has hired JPMorgan Chase & Co to explore options, which could include a potential 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.
The company's stock surged 18 percent on the news before ending up 5 percent at $2.09 on the New York Stock Exchange.
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 it is not actively pursuing a sale of the company or any significant assets.
"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," spokesman Drew Prairie said.
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.
AMD was not immediately available for comment, while a JPMorgan spokeswoman declined to comment.
Some investors believe part or all of AMD could be bought by a technology company that might want to emulate Apple Inc's tight control of software and components, a strategy credited in part for the success of the iPad and iPhone.
One source described AMD as a "legacy company" and said it might prove difficult to sell because of its dependence on the PC industry and lack of strong mobile offerings.
Another source mentioned AMD's game console chip business and growing focus on embedded chips as the company's silver linings.
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.
Like Intel, Sunnyvale, California-based AMD was caught flat-footed in recent years with the emergence and fast growth of mobile devices.
AMD said last month it would slash 15 percent of its workforce, while devoting more resources to areas outside of its traditional PC business, including communications, industrial and gaming applications.
(Reporting by Nadia Damouni and Noel Randewich; Editing by Paritosh Bansal, Gary Hill and Bernard Orr)[/quote]
[url=http://www.reuters.com/article/2012/11/13/us-amd-jpmorgan-idUSBRE8AC14Z20121113]Source: Reuters[/url]
My first words when reading this article were "what?, What? WHAT?". This is terrible news.
Omg Valve buy it omg!!
If AMD goes under, expect something like this:
"Introducing the new entry level Intel Celeron processor: only 299 dollars."
A monopoly is the last thing we need right now.
I hope they don't go under, I don't want Intel to control the desktop microprocessor market.
Oh god wait this means a monopoly on 2 areas :rolleyes:
But their GPU department can't be doing that badly can they?
[quote=OP]Some investors believe part or all of AMD could be bought by a technology company that might want to emulate Apple Inc's tight control of software and components, a strategy credited in part for the success of the iPad and iPhone.[/quote]
Holy shi, fuck that
[QUOTE=Guided;38440465]hopefully intel prices won't rise[/QUOTE]
they will
Wish ATI would have stayed seperate, The 7970 is a solid card compared to 680
The worst scenario for Intel in case of the downfall of AMD would be third-party made workarounds.
Shit, it cant happen! MY COMPUTER IS NOT COMPLETE WITHOUT AMD HARDWARE!!!!!
How are they doing badly? They're making console APU's.
If this goes through, I'll probably just switch to Nvidia products. Always heard their graphics cards were superior anyway.
I bought a 7970 hope, they won't shutdown.
Quick, let's pool our money and buy AMD.
[QUOTE=laserguided;38440551]How are they doing badly? They're making console APU's.[/QUOTE]
did you read the article
Please don't let this happen, I still need to buy my computer D:
whelp, now the choice isn't gonna be Intel or AMD, but rather x86 based or ARM based.
[QUOTE=Metalcastr;38440569]Quick, let's pool our money and buy AMD.[/QUOTE]
We'll make a better AMD!
With blackjack and hookers!
[QUOTE=Ownederd;38440570]did you read the article[/QUOTE]
Yes I did, they're loosing money. Did you read my post?
But my only other option will burn down my house!
[QUOTE=laserguided;38440588]Yes I did, they're loosing money. Did you read my post?[/QUOTE]
lol
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[QUOTE=Ownederd;38440598]lol[/QUOTE]
lol
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If ps4 and nextbox use AMD thingies like the rumors say, AMD will be taking in a pretty penny soon.
Add the ability to force SSAO in games and encourage developers to properly support Crossfire and you might get a few more buyers.
[sub]It would be nice at least.[/sub]
Wait if they go under we'll be stuck with Intel and NVidia in the video section and Intel alone in the processor. I dont want a monopoly to happen at all. This would really fuck up computer gaming as Nvidia cards are higher priced than AMD.
[QUOTE=Amiga OS;38440600]I'm seriously not surprised, the Bulldozer is complete and utter fucking tripe.
And I have no interest in their GPU's either.
Intel are gonna milk the fuck out of this opportunity, with no real rivals they are gonna raise prices through the roof.[/QUOTE]
Their GPU's have been viable options for pretty much the whole time though, if you exclude the 3870's and those bottom-feeders.
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