Tom's Hardware > Forum > CPU & Components > CPUs > Reuters: AMD to be bought out?

Reuters: AMD to be bought out?

Forum CPU & Components : CPUs - Reuters: AMD to be bought out?

Tom's Hardware: Over 1.4 million members in 6 different countries available to answer all your high-tech questions. Sign up now! Its free!
Page:    Previous 1 2 3 Next Bottom Search this thread
Word :    Username :           
 
Sponsored Links
Register or log in to remove.



It was reported on slashdot as well. From what I read at slashdot, everything is mere speculation.

Reply to sweetpants




Unfortunately because of your staker-like sig, I think you should be disregarded as overly-envious and lacking in self-cofidence.


Beware The Brood!

Reply to BaronMatrix

I think an AMD buyout is very probable at this point. Given how the rumors have consistently become fact here lately. I was actually surprised that AMD didn't get bought out back in 2002 when their market cap went down to about $700 million. I just knew beyond a shadow of a doubt that an IBM or nVidia buyout was imminent.

If this does happen, lets all hope and pray that AMD doesn't end up like Cyrix.
As I recall, Cyrix was acquired by IBM and then sold off to National Semiconductor, and was eventually sold again to VIA. All the while becoming less and less competitive. At least I think that is how it all went down. Please correct me if I am in error.

Reply to gr8mikey

EA is buying them out, shhhh.

Reply to STEMNIN

Yeah. Stock +5% = lots of shares exchanging hands. There is definately something on the go here. Either:
Someone is building up their stock of AMD for a buyout, or,
Speculators believe the purchase rumour is more than rumour and are buying as a result.

Reply to Wombat2

At first I didn't think this would happen and was against it. Then I started really thinking it would be a pretty good idea for the company that would be buying them. I mean not only would they be getting a CPU company but they would also be getting a GPU/chipset company. Sounds like a good deal to me. Oh well, I guess we'll have to wait and see!

Reply to GlacierFreeze

Quote :

BaronMatrix:
"AMD is actually killing Intel."
"Now me, I have very nearly had sex on the dance floor of a club with a sober woman - about 4 times."
"I'm still the only nerd with a rap album."



Coach, this is kinda gay. I know there's no such thing as bad publicity but.........

I guess you're used to people who talk but never actually do anything.

Reply to BaronMatrix

Quote :

Yeah. Stock +5% = lots of shares exchanging hands. There is definately something on the go here. Either:
Someone is building up their stock of AMD for a buyout, or,
Speculators believe the purchase rumour is more than rumour and are buying as a result.



Rumors have been around a couple weeks however new reports of those rumors and the dead cat bounce off the 52 week low Thursday was the fuel for gains yesterday. Today China is taking everyone for a dive in the market although AMD is down more than the broader market, they lost about half of yestrdays gain at opening today. There was a tremendous surge in volume yesterday, with a couple of large block trades possibly accumulations, and during the first half hour of trading today however, then it's back to normal lower volume and lower price.

Reply to baldeagle

Quote :


There was a tremendous surge in volume yesterday, with a couple of large block trades possibly accumulations, and during the first half hour of trading today however, then it's back to normal lower volume and lower price.



Anyway to ID the companys behind those block trades or can you only see the brokers involved?

Reply to Wombat2

i am hearing SONY is looking into aquiring AMD

Reply to lordpope

Quote :

i am hearing SONY is looking into aquiring AMD

That would make sense. Maybe they can get the PS4's working right.

Reply to 1Tanker

Will be interesting to see if AMD/ATI is on the buying block?

If the board agrees to a poison pill then I would say that they may not be looking for a suitor.

If they in fact decide not to do a poison pill then I see AMD/ATI as ripe for takeover.

(Be advised that a poison pill is often just another bargaining chip to up the value of the bid and to stop others from pursuing)

Reply to Ches111

I wonder if AMD execs are using rumors to drum up stock so that they can sell off their tanking stock shares.

He he, maybe they just benchmarked Barcelona and said "oh crap!" and now they want to dump shares before the stock falls through the bottom. :lol:

Anyway, I doubt this can be taken seriously, but it was enough for investors to get excited.

Reply to wolverinero79

Quote :

Will be interesting to see if AMD/ATI is on the buying block?



I dont see that AMDTI has the cash do this atm ... thats precisely what their problem is ... cash.

Reply to Wombat2

Sony has to many problems atm to buy anything I would think...and IBM isnt ready to go toe to toe with Intel on so many markets all at once...however something I hadnt thought of before...Nvidia has said they want to design an x86 processor...they have the lowest ongoing debts of any tech firm i have recently looked into...if they bought AMD and then sold the ati division to someone with the cash,intel, they could almost buy AMD for nothing at all,cancel the amd name, and whoops, suddenly Nvidia has the x86 license they have been seeking and been unable to find...

Reply to jackxlj

I agree Jack...

Sony = Proprietary EVERYTHING!!!

Sony's way or the highway!! EEEEwwwwwww!!!!

Reply to Ches111

Man can you think of the DRM built into the CPU and GPU?

Root kits at the CPU level anyone? 8O 8O 8O 8O 8O

Reply to Ches111

Quote :

i am hearing SONY is looking into aquiring AMD



Ooooooh, please say it ain't so...... yuck!!!!!

While I have been harsh on AMD's execution of late, and poked a little fun at the 4x4, I am not an AMD hater ---- but I am a Sony hater :) .... please, no... no.... NO!!!!!

Man I so totally agree with that. I dislike Sony simply for the fact of their proprietary crap moves. I seriously hope they do not buy AMD. I would definitely become an Intel fanboy very shortly after Sony bought AMD if it is true haha.

Reply to GlacierFreeze

Quote :

Will be interesting to see if AMD/ATI is on the buying block?



I dont see that AMDTI has the cash do this atm ... thats precisely what their problem is ... cash.

Except that AMD left 2006 with $1.5B in cash and cash equivalents.

Reply to BaronMatrix

Yeah Baron and MCI had 4+Billion in Cash-on-Hand when they started down the slippery slope...

As a matter of fact Baron,

If you hear a company quoting their Cash-on-Hand, frequently, as a hint to their position of strength you might want to also look at what is happening behind the curtain ;).

Reply to Ches111

What about MS? They:
-Have enough cash to buy AMDTI 10x over.
-They already make hardware.
-They would love to offer DRMed hardware to partner their DRM infested software.
-Expanding their software monopoly into a hardware/software monopoly would be very lucrative.

Reply to Wombat2

Wombat,

Right now the rumors point to private equity. This would mean that AMD/ATI is being looked at for what its potential in the market is as pieces.

They would typically purchase then distribute to make lean/pair down the companies profile. They will even sell off divisions that do not go well with what they believe to be the companies vision.

Reply to Ches111



The Inq was quick to float the Intel tax bill story, but has yet to pick up on the buy out rumor.... thus it must be true ;) .. :)

LOL, the INQ not carrying a story as evidence the story is true. That amuzes me greatly.

This rueters article isn't so much about the rumor as it is explaining that things are actually happening because the the rumor. People saw AMD stock go up, rueters is just explaining why it went up, not reporting on the rumor itself so much.

Reply to flasher702

Quote :

i am hearing SONY is looking into aquiring AMD

:lol: :lol: :lol:

Reply to shinigamiX

Quote :

What about MS? They:
-Have enough cash to buy AMDTI 10x over.
-They already make hardware.
-They would love to offer DRMed hardware to partner their DRM infested software.
-Expanding their software monopoly into a hardware/software monopoly would be very lucrative.



They have plenty of cash to buy whatever they maybe a couple of small counties too, However, Microsoft/AMD/ATI wouldn't happen because being a software monopoly already they have to tread very lighly around hardware issues for fear of government intervention on anti-trust grounds.

Reply to baldeagle

Quote :

What about MS? They:
-Have enough cash to buy AMDTI 10x over.
-They already make hardware.
-They would love to offer DRMed hardware to partner their DRM infested software.
-Expanding their software monopoly into a hardware/software monopoly would be very lucrative.



Yep, my WAG, if a buyout happened, would be an MS buyout too. It'll sure upset Intel though.

Speculation as to what Intel would do if that happened? Buy a software/OS company? Develope deeper relationships with companies that already have their own OS? SUN anyone? Apple anyone? 8O

Reply to bixplus

1st - Sony Blue Ray... non-event. HDDVD looks to be the front runner for the format wars.

In terms of AMD stock.... a few investment tips:

"where there's smoke, there's often fire."

Or

"Dead cat bounce"

Or

"Never catch a falling knife"

Or

"Bottom Fish"

------

You decide which philosophy fits your view. However, the company is hemorrhaging cash.

Best case scenario, they launch a new line and slash expenses (or at least have ZOG... zero overhead growth).

Worst case... total recapitalization of debt and stock. AKA - Chapter 13 Bankruptcy... eliminating the debt, but wiping out all current stockholders.

---

Disclosure - I do not discretely own any AMD or Intel stock... other than normal 401K mutual fund holdings. I am also not a stock advisor.

Reply to Twisted_Sister

Quote :

I guess since Rueter is covering the story, then it is too credible for the Inq to pick up :) :) .... by daily dig at rumor rag we all have fun with :)



Rueters is credible? :lol: Aren't they included in the "drive by media"?

Reply to Ranman68k

Quote :

Sony has to many problems atm to buy anything I would think...and IBM isnt ready to go toe to toe with Intel on so many markets all at once...however something I hadnt thought of before...Nvidia has said they want to design an x86 processor...they have the lowest ongoing debts of any tech firm i have recently looked into...if they bought AMD and then sold the ati division to someone with the cash,intel, they could almost buy AMD for nothing at all,cancel the amd name, and whoops, suddenly Nvidia has the x86 license they have been seeking and been unable to find...



or better yet they swallow the competition and gain the x86 license.

mmm the kill two birds with one stone trick. :P

so that would make it NvidAMDTI :roll:

Reply to pip_seeker

Quote :

:) I would take Rueters over the Inq any day.



Well... You have a very good point there! :D

Reply to Ranman68k

Quote :

i am hearing SONY is looking into aquiring AMD

That would make sense. Maybe they can get the PS4's working right.

More likely Sony would screw up K10 and try to charge $3000. per chip

Reply to turpit

Quote :

Wombat,

Right now the rumors point to private equity. This would mean that AMD/ATI is being looked at for what its potential in the market is as pieces.

They would typically purchase then distribute to make lean/pair down the companies profile. They will even sell off divisions that do not go well with what they believe to be the companies vision.



Private equity firms have been getting really busy lately. Really busy. There have been a few record buyouts recently, among them a giant casino and we all know how much cash they have on hand.

They hope to purchase on the down slope, trim it down, get it on the up slope and sell it back (as you alluded to). It kinda makes sense, but it seems like a risky buy out. AMD just bought out ATI and is having issues getting them on track. Private equity guys always do their due diligence, they must see something they like. I'd have to get down and dirty with the AMD financial statements to see if I could find anything and honestly I don't care to take the time.

What I can say is it's not how much cash they have at year end but their ability to turn receivables over and generate cash from operations to fund their CapEx budget. I would be really interested to see their margins and a cost breakdown. I wouldn't expect any deal to come to life until post R600 and Barcelona release.

I might get time to tomorrow before my engagement team rolls in. It will take a full day to run through proper analytics and footnotes. Any one actually want to see the results? A finance analyst will have a slightly different perspective, but I can get a good working summary going, if I get lucky I can value the stock (not as well as those who get paid for it but, hey I try lol).

Reply to SuperFly03

****CONSPIRACY THEORY FOLLOWS*****

What if this private equity firm was pulling the strings of AMD management. They get AMD to buy ATI knowing the likely short term collapse in the stock price. The stock tanks then they step in and get 2 for the price of one and then give the AMD execs a nice little bonus in their Swiss accounts.

Plausible?

Reply to gr8mikey

Okay, I usually try to be objective about every post, but I am telling you here and now, than i avoid sony like the plague(okay, i owned the ps1, and i currently own the ps2), I don't like there product, and I sure as hell don't like the way they do business. If sony buys amd/ati they can kiss my money good buy. Only company I hate as much as sony is comcast.

Reply to reconviperone1

Quote :

****CONSPIRACY THEORY FOLLOWS*****

What if this private equity firm was pulling the strings of AMD management. They get AMD to buy ATI knowing the likely short term collapse in the stock price. The stock tanks then they step in and get 2 for the price of one and then give the AMD execs a nice little bonus in their Swiss accounts.

Plausible?



:) :) not impossible, but improbable. If this were true it would be the scandal to end all scandals --- nope, I see the ATI acquisition as a technically necessary move on AMD's part, the rationale is too sane to be a business/conspiracy manuever.

Sure it's plausible but I don't think they can cover it up well enough. I know you were kind of 1/2 joking, so it's not a shot against you. If it were true someone would slip or some underpaid engineer would give them up.

Reply to SuperFly03

Yes, I was joking. It doesl put into perspective the extremely good deal they would be getting for all of those assets. And to think if they wait until the summer slump they could probably get it about 40% cheaper than they could right now.

Reply to gr8mikey

Nvidia wants ATI to exist, much as ford wanted chrystler to exist, coke helped out pepsi in the 70s, and others have done. You can duople with processors and graphics all you want, but in every sence of the word... theres a third...Intel is the giant rideing the back of the graphic card world...and ibm still makes processors...if ATI stops existing then Intel has only one competitor...and its much easier to steamroll one company then two. When small companies take on big ones...it is often in their best interest to not be the only company going up against the giant...ask david if he wouldnt have prefered another man at his side when goliath started chargeing

Reply to jackxlj

So what does this have to do with AMD being bought? ATi already doesn't exist, it has been rolled up into AMD. No one is suggesting that AMD will go bankrupt, just a change of ownership in order to get the company on track.
AMD needed ATI to stay competitive. IGP's bring in alot of cash. There is more money to be made on IGP's than high end GPU's, so Intel is right where they want to be.

Reply to SuperFly03

Hope it won't be by a private equity group. That'd put bean counters in charge of AMD, and the ATI division could turn into nVidia: rushing products to the market, even if they're unfinished or buggy (the 6800 Ultra comes to mind here: it had a lot of broken features, if I recall correctly).

Reply to Arklon
Previous
1 2 3
Tom's Hardware > Forum > CPU & Components > CPUs > Reuters: AMD to be bought out?
Go to:

There are 1251 identified and unidentified users. To see the list of identified users, Click here.

Please mind

You are about to answer a thread that has been inactive for more than 6 months.
If you still wish to proceed, please ensure that your posting is original and does not duplicate or overlap any prior responses to this thread.

Add a reply Cancel
Sponsored links
  • Ask the community now
  • Publish
Ad
They won a badge
Join us in greeting them