AMD in Acquisition Rumors Again; Stock Rises

News
By Wolfgang Gruener
published

AMD's stock shot up more than 9 percent in Wednesday trading, which appeared to be due to market rumors that suggested AMD could be on the auction block.

Patrick Wang, an analyst with Evercore Partners said that Qualcomm and Samsung have been mentioned as possible buyers, but there was no substance to those rumors.

However, Wang noted that there may have been "a lot of short covering as volumes shot up in the afternoon" and that it was "unlikely" that AMD would receive an offer. AMD's stock ended the day at $4.40, up 9.45 percent or $0.38 from $4.02 on Tuesday. The stock increased another $0.05 or 1.14 percent in after hour trading. The gains added about $280 million to AMD's market cap, which now stands at about $3.1 billion.

An AMD takeover is one of those stories that just won't go away. Last year, there was speculation that Dell may be interested in buying AMD.

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Wolfgang Gruener
42 Comments Comment from the forums
  • greghome
    If Samsung does buy AMD, it might mean the end of fab problems for AMD.... :/
    which sadly has been a major source of butthurt in AMD's business for quite a while now.

    Reply
  • noobzilla771
    Samsung Phenom III 965 Black Edition, anyone?
    Reply
  • nforce4max
    I know that VIA's x86 license is non transferable while AMD it might be but I am not sure. I have mixed feelings if Samsung or Qualcomm were to purchase AMD.
    Reply
  • Pinhedd
    greghomeIf Samsung does buy AMD, it might mean the end of fab problems for AMD.... which sadly has been a major source of butthurt in AMD's business for quite a while now.
    The fab problems are why AMD divested from Global Foundries and partnered with TSMC instead for all their new chips.

    Hopefully AMD is on track to have all 4 cylinders firing at the same time since 2006
    Reply
  • rpgplayer
    Samsung buying AMD might be one of the best things to every happen to AMD. Samsung has a top-notch fab process and they definitely do not skimp on R&D.
    Reply
  • pedro_mann
    Assuming that the x86 license can be transferred to Samsung. They would be the best suitor for AMD, hands down.
    Reply
  • Jerky_san
    I think its transferable because AMD forced Intel to renegotiate on their licenses when they did AMD64
    Reply
  • freggo
    I thing that Samsung and AMD would be a great combination.
    As for the license... transferable or not; that should be a minor point
    to be worked out between Intel and Samsung if needed.
    It may even get Samsung a better deal.
    Reply
  • computernerdforlife
    Samsung is in bed with a few people today: RIM software licensing, and AMD buyout offer.
    Reply
  • rebel1280
    Wow, if Samsung purchases, they will have HD, RAM, CPU and VGA.... goodbye VIA :/ Samsung may soon become the kings of the ITX platform!
    Reply