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AMD CEO Denies Sale of Company and Assets

By - Source: Tom's Hardware US | B 52 comments

On the right path, Read believes.

AMD's CEO Rory Read has issued a memo to company staff clarifying and calming those who read the Reuters report earlier claiming that AMD was exploring sale options. The AMD leader says clearly that there is no sale and reiterates his confidence in the new direction. The memo below comes from the Verge.

Team,

Within the past couple of hours, a major media outlet wrote a piece speculating about the sale of AMD. As you know, articles such as this periodically surface in the media. I want you to know exactly how we are responding to this speculative piece, as we expect some additional media outlets to inquire. Our official response is below, along with the original news article.

But let me personally reinforce to you: we are not actively pursuing the sale of AMD or any of our significant assets. It's full steam ahead with our strategy … we absolutely are on the right path.

Rory

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  • 20 Hide
    mikenygmail , November 14, 2012 12:45 PM
    I'm glad someone else realizes what's going on here. Indeed, Intel and Nvidia's paid bashers are all over the place in one form or another. They're on the yahoo finance message boards, posting anti-AMD messages on AMD's message boards. They've repeatedly posted outright lies claiming that AMD is in the process of declaring bankruptsy, or will go bankrupt since 2008.

    AMD's Piledriver CPU's are great. AMD desktop and laptop APU's have no competition and can actually run games reasonably well, unlike any Intel product. AMD is even making tablet APU's now, and ARM chips are on the way.

    The last time AMD's stock was at $2, it went up to $10 in less than a year - all when AMD was in a much worse position than now. This took place from February to December in 2009. Don't expect the stock to stay this cheap for long!

    Bottom line, don't believe the BS and support AMD. This actually helps lower prices for us all.
  • 15 Hide
    Anonymous , November 14, 2012 12:25 PM
    AMD is obviously going to ditch x86 completely and move to ARM, where they can get a fair deal, instead of having to deal with Monopoly-zilla. That is the real reason Steamroller and Kaveri are delayed, and they're going to do Piledriver+GCN for the next APU instead of Steamroller+GCN because they're considering not doing them at all with x86...

    Of course, the minute they announced that, Intel had their minions in the tech media run hit-piece after hit-piece on AMD... Read any of the news sites for the past few weeks, every article has a disgustingly negative connotation towards AMD, and Larrafail is being praised to no end with the usual lack of hard evidence that it's going to be worthwhile... They all say "AMD isn't remotely competitive...", which is a lie, you would be hard pressed to tell the difference in a blind test. VIA x86 chips actually, really aren't competitive, but you would think that AMD had VIA levels of performance just reading tech sites...

    Intel doesn't want AMD to make an ARM chip because without the constraints of having to be x86(aka: Intel) compatible, AMD would have every chance in the world of out-performing Intel, they have the know-how to make a 4.0ghz+ ARM chip with greater IPC than current ARM chips. Intel wants to run AMD out of business before they can put out their first ARM product.

  • 14 Hide
    omnimodis78 , November 14, 2012 12:13 PM
    The key phrase to keep a close eye on in that statement, and the official statement, is that AMD is "not actively pursuing" the sale of the company. When wording like that starts to be thrown around, it's clear as day to anyone familiar with the end-life of a business what that means.
Other Comments
  • 14 Hide
    omnimodis78 , November 14, 2012 12:13 PM
    The key phrase to keep a close eye on in that statement, and the official statement, is that AMD is "not actively pursuing" the sale of the company. When wording like that starts to be thrown around, it's clear as day to anyone familiar with the end-life of a business what that means.
  • 15 Hide
    Anonymous , November 14, 2012 12:25 PM
    AMD is obviously going to ditch x86 completely and move to ARM, where they can get a fair deal, instead of having to deal with Monopoly-zilla. That is the real reason Steamroller and Kaveri are delayed, and they're going to do Piledriver+GCN for the next APU instead of Steamroller+GCN because they're considering not doing them at all with x86...

    Of course, the minute they announced that, Intel had their minions in the tech media run hit-piece after hit-piece on AMD... Read any of the news sites for the past few weeks, every article has a disgustingly negative connotation towards AMD, and Larrafail is being praised to no end with the usual lack of hard evidence that it's going to be worthwhile... They all say "AMD isn't remotely competitive...", which is a lie, you would be hard pressed to tell the difference in a blind test. VIA x86 chips actually, really aren't competitive, but you would think that AMD had VIA levels of performance just reading tech sites...

    Intel doesn't want AMD to make an ARM chip because without the constraints of having to be x86(aka: Intel) compatible, AMD would have every chance in the world of out-performing Intel, they have the know-how to make a 4.0ghz+ ARM chip with greater IPC than current ARM chips. Intel wants to run AMD out of business before they can put out their first ARM product.

  • -4 Hide
    matt_b , November 14, 2012 12:36 PM
    The insinuation or even hint of mentioning a possible sale, having JPMChase hired to "explore options", and then denying any possible sale usually results in what most people's gut reaction is. It wouldn't surprise me, with the "lengthy" tenure Read has with AMD, this smells of golden parachutes and early retirements..........
  • 20 Hide
    mikenygmail , November 14, 2012 12:45 PM
    I'm glad someone else realizes what's going on here. Indeed, Intel and Nvidia's paid bashers are all over the place in one form or another. They're on the yahoo finance message boards, posting anti-AMD messages on AMD's message boards. They've repeatedly posted outright lies claiming that AMD is in the process of declaring bankruptsy, or will go bankrupt since 2008.

    AMD's Piledriver CPU's are great. AMD desktop and laptop APU's have no competition and can actually run games reasonably well, unlike any Intel product. AMD is even making tablet APU's now, and ARM chips are on the way.

    The last time AMD's stock was at $2, it went up to $10 in less than a year - all when AMD was in a much worse position than now. This took place from February to December in 2009. Don't expect the stock to stay this cheap for long!

    Bottom line, don't believe the BS and support AMD. This actually helps lower prices for us all.
  • -8 Hide
    ram1009 , November 14, 2012 12:50 PM
    I work down the street from a major Intel facility. One of their engineers told me recently that it's common knowledge among employees that Intel has been "carrying" AMD for years to avoid being branded a monopoly.
  • 5 Hide
    ekho , November 14, 2012 12:52 PM
    Hope you're right Rory.
  • -6 Hide
    Camikazi , November 14, 2012 12:58 PM
    ram1009I work down the street from a major Intel facility. One of their engineers told me recently that it's common knowledge among employees that Intel has been "carrying" AMD for years to avoid being branded a monopoly.

    That is more than likely true since Intel was more or less forced to license out x86 to AMD just to avoid being considered a monopoly years ago. That is the reason why AMD won't be sold, Intel cannot afford to let that happen since in order for Intel to make CPUs they need AMDs x86-64 and if AMD gets sold they could lose access to that license.
  • 3 Hide
    Anonymous , November 14, 2012 1:07 PM
    AMD is not going to ditch x86, at least not until Apple does, AMD is using the services of JPM chase to find a private equity qroup to buyout AMD's stockholders and take AMD private! Private equity groups are made up of very wealthy investors, who can afford to loose money for a few quarters, and then run AMD at the break even point for for even longer, while taking any profits that AMD may produce and reinvesting these profits back into AMD to build up AMD's markets! This should give AMD time to develop some competitive x86 APUs (to compete in the low end market) and ARM based CPUs for the Tablet, and maybe PC maket!
    AMD's will continue to be sold as will AMD SeaMicro server products, AMD can and does use Intel CPUs in SeaMicro products as well as AMD's CPUs and others!
  • -1 Hide
    Anonymous , November 14, 2012 1:12 PM
    This is like the inner-office memo you receive the day before everyone is laid off.

    Trust me, This CEO "Roy" is pure freaking evil, do not trust him. The company will be sold and he will run away with the money.
  • -4 Hide
    spectrewind , November 14, 2012 1:58 PM
    JustPosting76This is like the inner-office memo you receive the day before everyone is laid off. Trust me, This CEO "Roy" is pure freaking evil, do not trust him. The company will be sold and he will run away with the money.


    Exactly. Deny or obfuscate everything long enough for the leadership to take the money and escape the blast radius as the company "explodes," sacrificing the workers that made them rich.

    If word gets out, we will see an article about employees leaving; rats jumping from a sinking ship. Then we'll know.
  • 7 Hide
    Anonymous , November 14, 2012 2:02 PM
    The CEO can not sell a company! The board of directors and the major stockholders can! AMD's money is in publicly traded stocks! CEO Roy, despite the appearence of just fallen off turnip truck, is being told by the consultants (JPM CHASE), the Borad of directors, the major stock holders, AMD's creditors, and proabably the US government (treasery and Federal reserve), What the best method is to Fix AMD should be!
  • 6 Hide
    TeraMedia , November 14, 2012 2:05 PM
    @ram: that doesn't surprise me at all. If you look at Intel's and AMD's pricing, Intel has been setting prices on performance-comparable products at the bare limit of where AMD can make gross profit from their competing products (and actually at net-loss prices, when you look at AMD's quarterlies). But the Intel products that are superior are priced much higher, so that they do not strip away the remaining profit opportunity for AMD. While AMD is able to sell a processor for say, $125 with a 4% margin, Intel is able to sell a performance-competitive processor for the same $125, but with a 20% margin due to smaller dies and better yields. Intel makes bank, and AMD barely stays alive. Intel can't drop the price below $125 and bury AMD because of those pesky x64 licenses that Camikazi mentioned... as well as the increased monopoly scrutiny they would get. If AMD dies, it would not surprise me for the US DOJ to call for the breakup of Intel into separate design and fab companies - just like what AMD did. Imagine what happens to Intel CPU competitiveness if ARM makers, AMD, IBM, TI and others have access to the best leading-edge Intel fab plants?

    Intel views AMD's CPU division as a "regulatory tax", and little more.
  • -5 Hide
    captaincharisma , November 14, 2012 2:46 PM
    with the mainstream computers user's now going for tablets AMD will not last much longer in the consumer PC market
  • 3 Hide
    Anonymous , November 14, 2012 2:56 PM
    JustPosting76, CEO Roy only has his contract, his AMD stocks and stock options, and what ever buyout plan he negotiated with the AMD board of directors! that he can run away with and, granted, it is no small amount, it is not the whole farm! State and federal depts of labor have to be notified in advance of any large layoffs from companys of AMD's size! The SEC is also watching AMD, and all the other publicly traded companys! AMD is not sinking, they are loosing money, and making the stockholders angry, AMD can be turned around, but AMD will have to be taken private and owned by folks with deep pockets for a while!
    The Deep poket Folks (private equity group) do not worry so much about short term financial losses,
    can run AMD at the break even point, without having to worry about pissed off stockholders, for a longer while, until AMD and Its Fab partners can catch up somewhat to Intel's process technology lead! AMD's APUs and GPUs ae great products that just need more time and process shrinks to stay competitive in their markets and price points! The new market that AMD will be in the ARM market will be comimg into it own over the next 5 years, as will AMD owned SeaMicro, that will make AMD money. no matter the CPUs used in the SeaMicro servers!
  • 0 Hide
    f-14 , November 14, 2012 3:00 PM
    omnimodis78The key phrase to keep a close eye on in that statement, and the official statement, is that AMD is "not actively pursuing" the sale of the company. When wording like that starts to be thrown around, it's clear as day to anyone familiar with the end-life of a business what that means.


    i can't even count all the bankruptcies or sales every time i hear this key phrase. 8 times out of 10 the company was sold in the next 2 years after that statement or went belly up as no one wanted to buy them the other 2 out of 10
  • -4 Hide
    bison88 , November 14, 2012 3:15 PM
    Pretty soon AMD's stock is going to be trading at $.50 and they will have no choice but to sell.
  • 4 Hide
    Anonymous , November 14, 2012 3:16 PM
    AMD being bought by a private equity group is not the same as AMD being bought by another company!
    Being bought by a private equity group, means that AMD will still be AMD beacuse AMD will be sold to a different group of investers, Same AMD different investors (private investors not stockholders). AMD being sold to a different company is much more difficult, As the Department Of Justice, antiturst division will have to examine any salel to a company that is already in the same market as AMD, and the DOJ is not likely to approve the sale, if that sale would reduce competition in the CPU market! This will rule out any company that allready produces CPU of any type, if the company, that wants to aquire AMD, already has good market share!
  • 2 Hide
    fedelm , November 14, 2012 3:21 PM
    JustPosting76This is like the inner-office memo you receive the day before everyone is laid off.


    These kind of statements always sound like that; wether they end up being like that differs according to the situation I guess.

    I always reference an episode from peep show when everyone is made to believe that there is a fire in the office, and when everyone gets out the manager says "Well, thank you everyone for a great fire drill....annnnnnd this branch is now closed and you are all fired"; bye bye.

    Gets me every time
  • -6 Hide
    ta152h , November 14, 2012 3:25 PM
    AMD will live or die with the Jaguar. Let's face it, Piledriver isn't anything. It's already inferior, and it's not going to be replaced for a while; it's a typical AMD product. Piledriver and like products are what put AMD in their position. It's the problem, not the solution. It would have been OK within the context of Steamroller coming out soon, but it is their high-end product for all of next year as Intel keeps moving forward. It's an ugly thought.

    ATI stuff is inferior right now. They're losing to NVIDIA, and there's no realistic chance for that to change short term. Plus, it's a dying market. Not much hope there, just more pain, losses, and tears.

    Bobcat was already the best technology AMD had, but it's grown stale by remaining on 40nm, and is not very successful. Add it all up, and we have AMD living up to its initials as a stock - Always Moving Down. This technology can't even compete well with Intel's Core line in the low power market, and is too heavy to go into emerging markets.

    Jaguar changes all that fundamentally, and offers far more at 18 watts than Intel can come up with from any line, and can be left as a dual-core and place in much lower power devices, while still having superior performance to the existing product. It's not only a superior product, but it's aimed at growing rather than shrinking markets.

    People like to read about this or that new Piledriver or Radeon, or whatever, but they are inferior products. They are why AMD loses. They are why AMD is trading below $2 a share. Jaguar is their hope to get out of this mess, and hopefully improve their inferior products in other markets.

    They need to get this out right away.
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