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Newest Reuters wire claims IBM is considering a purchase of struggling AMD

Few will argue that AMD’s image and profitability are not what they used to be. AMD was having issues prior to its purchase of graphics maker ATI and things have only worsened since the ATI purchase.

DailyTech reported last week that AMD posted a massive loss for Q4 2007 of $1.72 billion while rival Intel posted significant profits across its operations. Between new architectures and aggressive pricing, a shakeup in the microprocessor arena is almost certain for 2008.

Reuters now reports IBM is possibly considering a buyout of floundering AMD and some say this would be an ideal time for the buyout with AMD stock prices at a low. IBM and AMD currently have a research and development expense-sharing deal in place. This is not the first time rumors of an IBM buyout of AMD have circulated.

Other companies have their eye on AMD as well. Texas Instruments and Freescale have both expressed interest in turning AMD around. 

Analyst Ashok Kumar from CRT Capital Group claims, “[IBM buying AMD is] a pretty low-probability event because IBM is moving away from hardware and manufacturing and moving to software and solutions. I don't think IBM wants the bragging rights to go up against Intel."

IBM sold its hard drive making business to Hitachi in 2002 and sold its PC business to Lenovo in 2005. According to Kumar an IBM purchase of AMD would “destroy shareholder value for IBM.

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Texas Instruments
By pauldovi on 1/24/2008 3:55:41 PM , Rating: 3
TI has always challenged Intel. They challenged them a while back to becoming the semiconductor leader. I see TI as the most realistic buyer.




RE: Texas Instruments
By jbzx86 on 1/24/2008 4:00:08 PM , Rating: 3
Someone needs to turn AMD around and kick Intel in the nuts again.


RE: Texas Instruments
By iGo on 1/24/2008 4:20:56 PM , Rating: 5
Basically, I wouldn't want AMD or Intel kicking each other in the nuts... What I would prefer both of the companies churning on great products and creating challenge to each other. Either of them going down is ultimately loss for us, consumers. We need great products and we need options to choose from.


RE: Texas Instruments
By AnnihilatorX on 1/24/2008 6:27:18 PM , Rating: 5
That's why you need cycles of each other kicking nuts.
Competition drives innovation.


RE: Texas Instruments
By HaZaRd2K6 on 1/24/2008 9:45:49 PM , Rating: 4
Give this man a six. Now.

I'd vote you up, but you're already a five ;-)


RE: Texas Instruments
By MrPoletski on 1/29/2008 8:13:11 AM , Rating: 2
Mainly so we can flame people for choosing the wrong pr0k :D


RE: Texas Instruments
By pomaikai on 1/24/2008 4:26:51 PM , Rating: 2
AMD needs to get up from getting kicked in the nuts several times from Intel and start kicking back. Instead it punched itself in the face with the TLB bug.


RE: Texas Instruments
By Aquila76 on 1/24/2008 7:46:54 PM , Rating: 4
quote:
... Instead it punched itself in the face with the TLB bug .


I read that as 'teabag' the first time and LOL'd. Pretty accurate, though: AMD is basically getting 'TLBagged' - especially by the 45nm parts.


RE: Texas Instruments
By DM0407 on 1/25/2008 1:38:51 PM , Rating: 3
quote:
... Instead it punched itself in the face with the TLB bug .


I think its more like running at full speed, jumping and spreading your legs like a flying V right into a telephone poll. Completely self inflicted and needless.


RE: Texas Instruments
By rebturtle on 1/24/2008 9:10:32 PM , Rating: 4
If anyone's been kicking AMD in the nuts, it's AMD (interesting visual, eh?). Their crazy business practices hurt them over and over again, regardless of how well or poorly the guys in R&D are doing at any given time. I mean really, go ask someone on the street if they've ever even heard of AMD.

Would it kill them to spend a few bucks on marketing to the general public? Maybe a commercial here and there? I know that they never really cared about the desktop market, it's the server market (and OEM's) that's profitable. But they alienate potential customers while still trying to sell them chips. That and the "we're king of the world!" when they succeed and, "Nobody loves me," when they don't really puts me off.

It's a shame, because I've always really loved (and built with) their hardware. Maybe all those great engineers can get entry-level jobs over at Intel once Hector is done driving the company into the ground while taking a record paycheck.


RE: Texas Instruments
By killerroach on 1/25/2008 8:54:16 AM , Rating: 2
Kicking themselves in the nuts, huh? Maybe their future is not in semiconductors, but in yoga. :)

Seriously, though, I've said for a while now that the most logical buyer for AMD (in my opinion) is Samsung, who has the capital and resources needed to make AMD quite scary indeed.


RE: Texas Instruments
By qwertyz on 1/24/2008 5:53:32 PM , Rating: 1
If there is anyone that really wants to buy them now it's really the time I don't know what they are expecting for only if they really don't wanna buy them that explains all.


RE: Texas Instruments
By murphyslabrat on 1/24/2008 6:22:10 PM , Rating: 3
No, no, no, no. You have it all wrong. The only one who kicked Intel in the nuts, has been Intel itself.

We could have been where we are with the Core 2 at least a couple of years ago, if Intel hadn't bet what it did on Netburst scaling to 10 Ghz.

So far, Intel's biggest malefactor has been itself.


RE: Texas Instruments
By StevoLincolnite on 1/25/2008 3:47:28 AM , Rating: 4
Well Netburst was actually late to the market, It was being designed in the Pentium 2 days and was going to be the "Pentium 3". But the competition from AMD was rather fierce with the AMD Athlon at the time, that is why we saw the Katmai and Coppermine. - The Tualatin was basically a test shrink which would be used in the Northwood.

The Netburst wasn't really a flop, Intel's Aggressive marketing made sure of that.


RE: Texas Instruments
By murphyslabrat on 1/28/2008 9:52:00 AM , Rating: 2
However, was an avid fan of Intel's Pentium III, but netburst ensured that none of my dollars have gone to Intel for the last 7 years.


RE: Texas Instruments
By jconan on 1/24/2008 8:54:47 PM , Rating: 2
Doesn't Nvidia stand a chance against Intel? The Nvidia+AMD/ATI... Wonder what they would call it afterwards if such a thing did happen...


RE: Texas Instruments
By kilkennycat on 1/24/2008 11:41:00 PM , Rating: 1
nVidia has no intention of buying that debt-ridden sorry mess called AMD. The best that AMD could do for itself is to reverse their catastrophic mistake of acquiring ATi, dump that part of the company and get back to what they do best - building processors. Should be no problem dumping ATi, since AMD have written down (or are still in the process) a total of about $3 billion associated with ATi as a combination of "good-will" and asset declines.


RE: Texas Instruments
By Penti on 1/26/2008 9:10:49 AM , Rating: 2
What are you talking about? nVidia is neither a semiconductor company or a big company that can buy AMD. They got 4000 employees AMD got 16700. Sure they make profit, but they still got less revenue then AMD. But i understand you only did speak hypothetically.

And no they wouldn't stand a chance since only AMD is a semiconductor company of those and the GPUs would still be manufactured by TSMC. I'm sure they would like access to ATIs line there though. IBM on the other side could manufacture the GPUs however they did a some what poorly job on that for nVidia when they used IBMs foundry.


RE: Texas Instruments
By crystal clear on 1/25/2008 6:27:23 AM , Rating: 2
Intel is not responsible for AMD's disasters or problems.

AMD management is the source of the problem- They have to be fired ,that only the shareholders can do.

The share holders themselves are to be blamed -they allowed the management to go ahead with plans/stratergies that turned a profitable company into All Made of Disasters company.

The shareholders are themselves responsible for not having acted decisively when it should have at the right time-the board of directors are equally to be blamed.

Intel bashing does not serve any purpose !

AMD is a classic case history study for MBA schools - mismanagement at its best.

Someone needs to turn AMD around(as you say) is the job of the shareholders to appoint a new management team made up of outsiders(not current AMD employees) including the board of directors.

and kick Intel in the nuts again .....thats wishful thinking....easily said than done ! ...if anybody deserves the kick in the nut it is the AMD management ... NOW
really fast before its too llate.

To conclude-

"It is not who is right, but what is right, that is of importance."


RE: Texas Instruments
By AlphaVirus on 1/24/2008 4:17:04 PM , Rating: 2
TI would be a good choice to purchase AMD. I am specifically thinking of how this would effect the hdtv market.
With AMD:ATI as one, we have seen better output of both since they are able to put both technologies through a single think-tank. If we had both AMD:ATI and TI together, could you imagine how nice DLP's would turn out.
Maybe I am thinking unrealistic but sure does sound nice.

IBM, I dont think they want to be bothered with a war between Intel and NVidia. The only thing I can see IBM bringing to that war is money which Intel can match easily.

Also the gaming market would help them profit seeing how the 360, PS3 and Wii have hardware from IBM/AMD. That would = 100% profit for them.

Perhaps they dont mind sleeping together but I dont see them getting married.
One night stand ftw.


RE: Texas Instruments
By murphyslabrat on 1/24/2008 6:25:11 PM , Rating: 2
quote:
IBM, I dont think they want to be bothered with a war between Intel and NVidia. The only thing I can see IBM bringing to that war is money which Intel can match easily.

http://en.wikipedia.org/wiki/POWER6
Go take a look at that. There's a reason why IBM has the money it does, and it is not entirely due to them almost being the oldest player in the IT industry.


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