AMD hires bank to explore options, AMD looking to sell?

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Avatar image for NoodleFighter
#1 Posted by NoodleFighter (8511 posts) -

dammit AMD why'd you have to buy ATI now you're gonna bring em down with you.

http://www.reuters.com/article/2012/11/13/us-amd-jpmorgan-idUSBRE8AC14Z20121113

(Reuters) - 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.

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, "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.

Source

Avatar image for Ly_the_Fairy
#2 Posted by Ly_the_Fairy (8541 posts) -

Well I know who I'm buying stock in soon.

Avatar image for JigglyWiggly_
#3 Posted by JigglyWiggly_ (24508 posts) -
Market value of just 1.4 billion? Panasonic just lost 10 billion dollars... this year
Avatar image for JigglyWiggly_
#4 Posted by JigglyWiggly_ (24508 posts) -

Well I know who I'm buying stock in soon.

Ly_the_Fairy
arm?
Avatar image for Ly_the_Fairy
#5 Posted by Ly_the_Fairy (8541 posts) -

[QUOTE="Ly_the_Fairy"]

Well I know who I'm buying stock in soon.

JigglyWiggly_

arm?

Well you certainly shouldn't buy stock when it's near the highest point it's ever been, so no not ARM.

AMD, however, is incredibly low, but the company itself has survived for so long through multiple periods of ups, and downs. The company will no doubt go through some major restructuring in the near future, cut out all the dead weight and low-gain sectors, and be there for the inevitable second PC boom:cool:

Avatar image for ronvalencia
#6 Posted by ronvalencia (20608 posts) -

dammit AMD why'd you have to buy ATI now you're gonna bring em down with you.

http://www.reuters.com/article/2012/11/13/us-amd-jpmorgan-idUSBRE8AC14Z20121113

[QUOTE="Source"]

(Reuters) - 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.

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, "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.

NoodleFighter

There's plenty of speculations i.e. AMD that denies the report.

."

Avatar image for Malta_1980
#7 Posted by Malta_1980 (11890 posts) -

i hope SW wont be flooded with AMD is DOOMED topics.... its already annoying seeing the many SONY is doomed ones...

Personally i believe AMD is probably going through a rough time and needs a good comeback plan...

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#8 Posted by Farsendor1 (462 posts) -

i like amd graphic cards but i do not like their cpu.

Avatar image for achilles614
#9 Posted by achilles614 (5167 posts) -
bu bu bu but if AMD goes under evil Intel will start charging us $2000 for a cpu like in the dark ages! Kidding, well good riddance to a company that hasn't been providing any real competition to intel in god knows how long.
Avatar image for NoodleFighter
#10 Posted by NoodleFighter (8511 posts) -

bu bu bu but if AMD goes under evil Intel will start charging us $2000 for a cpu like in the dark ages! Kidding, well good riddance to a company that hasn't been providing any real competition to intel in god knows how long.achilles614

It's not Intel's fault they basically got a virtual monopoly going on for them these days :P

Avatar image for Timstuff
#11 Posted by Timstuff (26839 posts) -

i like amd graphic cards but i do not like their cpu.

Farsendor1
I think many are of the same opinion. Buying ATI was what has kept AMD alive because they are still hot stuff when it comes to GPUs, and they have gotten contracted for pretty much all of the next-gen game consoles. I do worry about what would happen if they had to leave the CPU market though, or especially if Intel bought them out, because they price their CPUs so aggressively that I think it helps keep Intel's prices down. If Intel obtains a monopoly on the CPU market, we're probably going to see higher prices.
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#12 Posted by PC_Otter (1623 posts) -
[QUOTE="Farsendor1"]

i like amd graphic cards but i do not like their cpu.

Timstuff
I think many are of the same opinion. Buying ATI was what has kept AMD alive because they are still hot stuff when it comes to GPUs, and they have gotten contracted for pretty much all of the next-gen game consoles. I do worry about what would happen if they had to leave the CPU market though, or especially if Intel bought them out, because they price their CPUs so aggressively that I think it helps keep Intel's prices down. If Intel obtains a monopoly on the CPU market, we're probably going to see higher prices.

The 5 billion dollars it took to buy ATi was not worth it, even though it did present some interesting opportunities to bringing about new products and paradigms in computing.
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#13 Posted by superclocked (5864 posts) -

AMD refutes Reuters' claim. http://www.sciencenewsdaily.org/hardware-news/cluster253405602/

CEO Rory Read: "we are not actively pursuing the sale of AMD or any of our significant assets"

ronvalencia