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AMD in Acquisition Rumors Again; Stock Rises

By - Source: Marketwatch | B 42 comments

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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Top Comments
  • 21 Hide
    greghome , August 9, 2012 3:38 PM
    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.

  • 19 Hide
    noobzilla771 , August 9, 2012 3:43 PM
    Samsung Phenom III 965 Black Edition, anyone?
  • 18 Hide
    acadia11 , August 9, 2012 4:25 PM
    DoctorpinkIs x86 that important?


    Considering how much software is wrtten for the x86 world , yes.
Other Comments
    Display all 42 comments.
  • 21 Hide
    greghome , August 9, 2012 3:38 PM
    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.

  • 19 Hide
    noobzilla771 , August 9, 2012 3:43 PM
    Samsung Phenom III 965 Black Edition, anyone?
  • 12 Hide
    nforce4max , August 9, 2012 3:44 PM
    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.
  • 1 Hide
    Pinhedd , August 9, 2012 3:48 PM
    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
  • 18 Hide
    rpgplayer , August 9, 2012 4:01 PM
    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.
  • 15 Hide
    pedro_mann , August 9, 2012 4:09 PM
    Assuming that the x86 license can be transferred to Samsung. They would be the best suitor for AMD, hands down.
  • 7 Hide
    Jerky_san , August 9, 2012 4:13 PM
    I think its transferable because AMD forced Intel to renegotiate on their licenses when they did AMD64
  • 8 Hide
    freggo , August 9, 2012 4:14 PM
    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.
  • 4 Hide
    computernerdforlife , August 9, 2012 4:15 PM
    Samsung is in bed with a few people today: RIM software licensing, and AMD buyout offer.
  • 8 Hide
    rebel1280 , August 9, 2012 4:19 PM
    Wow, if Samsung purchases, they will have HD, RAM, CPU and VGA.... goodbye VIA :/  Samsung may soon become the kings of the ITX platform!
  • -9 Hide
    Anonymous , August 9, 2012 4:20 PM
    Is x86 that important?
  • 1 Hide
    Wisecracker , August 9, 2012 4:23 PM

    AMD is not 'divested' from Global Foundries.

    TSMC fabrication allows bulk silicon for the SoC 'Brazos' chips, and it would not be surprising if Kaveri 28nm APUs using SOI wafers would be available from them, too.

  • 18 Hide
    acadia11 , August 9, 2012 4:25 PM
    DoctorpinkIs x86 that important?


    Considering how much software is wrtten for the x86 world , yes.
  • 3 Hide
    shafe88 , August 9, 2012 4:26 PM
    rpgplayerSamsung 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.

    Yea Samsung buying AMD might be the things to happen to amd as long as they stay loyal to the amd fan base. Tho I hope it never happens, it would be kinda funny if Intel bought AMD and competed with it self.

    "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." I hope DELL doesn't buy AMD, we don't need AMD any worse than it is, pulse we don't dell forcing people to buy a their junk computer's just to get a AMD processor or ATI graphics.
  • 4 Hide
    acadia11 , August 9, 2012 4:28 PM
    Personally am opposed to AMD being purchased by anyone. Or say someone with alot of cash on hand. Google or FB, I know it's not their domain, but someone who can make a real investment into the company. I see samsung just adding it as another product, they would never turn it back to it's glory days of being better than Intel. They would just look to continue current trend and profit. While a younger player Google and FB , who are looking to diversify have the cash on hand to make the investment needed to not just see it as a cash cow but an innovation house.
  • 6 Hide
    Pinhedd , August 9, 2012 4:37 PM
    WisecrackerAMD is not 'divested' from Global Foundries.TSMC fabrication allows bulk silicon for the SoC 'Brazos' chips, and it would not be surprising if Kaveri 28nm APUs using SOI wafers would be available from them, too.


    Yes they are divested. AMD no longer owns any stake in Global Foundries. They sold the last of it in March of this year
  • 3 Hide
    goodguy713 , August 9, 2012 4:55 PM
    yea i would think that there are only a few companies out there that have the actual cash or need to buy a company like this .. apple.. samsung qualcom dell .. as mentioned but personally the amount of RND that needs put into the processors Adds quite a bit more money to the price tag .. a lot of it falls down to IP patents thats the real value here.
  • 5 Hide
    spiketheaardvark , August 9, 2012 5:09 PM
    I've always thought a IBM AMD merger made a lot of sense. Little overlap between companies. IBM get back into consumer level goods. Using in house chips might improve margins on x86 servers. AMD gets IBM R&D budget and important manufacturing tech.
  • -1 Hide
    DRosencraft , August 9, 2012 5:11 PM
    I highly doubt that there is any substance to this rumor. I would imagine Qualcomm as a chip maker would be a more likely buyout target for AMD than it being the other way around. And Samsung seems to be working in other areas at the moment, and again would probably be more interested in buying a Qualcomm to help their mobile products division than buying AMD. I know that people are writing the doom of AMD because of its CPU struggles, but let's not forget that they have a really good GPU line there too. I would rather AMD weather the storm for now and keep working to improve than have them bought out by someone who starts messing with everything and end up ruining what's good and failing to improve on what was bad.
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