Reuters Claims AMD is Pursuing a Sale, AMD Denies it
November 14, 2012 1:03 PM
comment(s) - last by
Report claims AMD has hired a bank to look at selling assets, such as its patent portfolio
on Tuesday created a stir in the semiconductor side of the New York Stock Exchange when it published a report citing three sources as saying that Advanced Micro Devices, Inc. (
), the world's second largest graphics processing unit and x86 chipmaker, hired JPMorgan Chase & Comp. (
) to "explore options" including "a sale".
I. Will AMD Sell Its Patents?
"Sources" Say it Might
The publication cited AMD's struggles to achieve mobile market share as a key driver of the probe. An
unwillingness to pursue mobile options
is viewed as a key factor behind AMD's decision to
force Dirk Meyer out of the company's chief executive spot
in Jan. 2011.
did clarify that its sources suggested AMD may merely look to sell a significant part of its patent portfolio and that a sale of the entire company was unlikely.
JPMorgan refused to comment on the rumor. But an AMD spokesperson Drew Prairie directly denied it, stating, "[AMD is] not actively pursuing a sale of the company or significant assets at this time. 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 vigorously denies rumors that it is pursuing a sale. [Image Source: AP]
That's a pretty direct denial, although the adjective "actively" could give AMD some wiggle room if it is informally probing such possibilities in secret.
AMD has posted three losses in the last year -- $157M USD (Q3 2012), $590M USD (Q1 2012), and
$177M USD (Q4 2011)
. AMD did post a small profit in Q2 2012 -- $37M USD.
II. Change is in Store for AMD, One Way or Another
News of a potential sale of some of AMD's assets is not the only surprising news to emerge regarding AMD in recent weeks. The chipmaker announced two weeks ago that in 2014 it would be releasing 64-bit Opteron server chips, and potentially consumer chips
based on ARM
Holdings plc's (LON:ARM) proprietary reduced instruction set computer (RISC) architecture, a rival to x86.
The switch to
ARM's Cortex-A5x series intellectual property (IP) cores
could save AMD on engineering overhead. Versus the company's current monolithic complex instruction set computer (CISC) x86 cores, which are designed entirely in house, AMD's will only have to tweak, improve, and otherwise performance tune the IP-cores from ARM.
AMD has not announced plans to discontinue development of monolithic x86 cores, but given the high costs and AMD's continual struggles with profit, it would not be surprising to see AMD make that move once it jumps on the ARM train. For now, AMD's greatest market success is leveraging its GPU product in
CPU+GPU "accelerated processing units" (APUs)
, which have been scoring many laptop design wins.
The chipmaker is also gaining ground on rival Intel Corp. (
) in the server market. While Intel's products do win on lightly threaded loads, AMD's latest
Opteron 6400 series
) cores beat out Intel's offerings in heavily threaded loads. When you factor in AMD's cheaper prices, the company's server line is appearing very attractive to large clients; particularly those who actively run virtualized data centers or perform parallel computing.
Despite losses, AMD is gaining ground in the server market. [Image Source: Reuters]
world's most powerful computer
is indeed powered by AMD's Opteron 6200 Series chips.
This article is over a month old, voting and posting comments is disabled
11/14/2012 5:58:35 PM
Sony will buy AMD promise to use the procs in its next PlayStation iteration then at the last minute use a competitors costing themselves billions. just kidding
Seriously who is out there that can afford them and know how to run them?
Even if weren't supposed to know about this "sale", the list is too small for them not to know and subsequently the "creditors".
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
"Titan" Supercomputer, Powered by NVIDA GPUs, Seizes Top500 Crown
November 13, 2012, 10:24 AM
AMD's New Piledriver Opterons Claim to Match Intel's Performance at Half the Price
November 5, 2012, 4:32 PM
ARM Goes 64-bit: Cortex-A50 Surfaces, to Target Everything From Server to Phones
October 31, 2012, 11:14 AM
AMD to Make 64-Bit ARM Processors for "Multiple Markets", Starting With Opterons
October 30, 2012, 1:03 PM
AMD's Trinity, Intel's Sandy Bridge Battle for Budget ($600-and-Lower) Space
May 15, 2012, 3:51 PM
SanDisk Unveils Pricey iXpand USB 2.0/Lightning Drive to Expand iPhone, iPad Storage
November 13, 2014, 2:29 PM
HP's 15.6" Omen Gaming Laptop is Incredibly Thin, Powerful
November 4, 2014, 10:34 AM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Lenovo Once Again The Top Global PC Maker, Apple Takes 50% of PC Profits
October 9, 2014, 7:46 AM
It’s Official: HP to Split Into Two Business Units
October 6, 2014, 8:14 AM
Quick Note: HP Plans to Split PC, Enterprise Units
October 5, 2014, 4:31 PM
Most Popular Articles
Austrian Pilots Call Surface 3 Pro Flight Bag a "Dream Come True"
November 14, 2014, 2:00 PM
Wal-Mart: Miss Thanksgiving, Get Xbox One + Master Chief Collection for $299
November 17, 2014, 9:40 PM
Nokia Explores Two Paths Back to the Smartphone Market
November 14, 2014, 9:05 PM
It's Official: Twitter is Profitable "Junk"
November 16, 2014, 10:45 PM
U.S. Marshals Using Fake, Airplane-based Cell Towers to Scan Cell Phones of Americans
November 14, 2014, 9:05 AM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information