Report: AMD Hired JP Morgan to Explore Options
AMD is looking for ways to make some cash in a changing market before its reserves are depleted.
Reuters reports that AMD has hired on J.P. Morgan Chase & Co., a leading global financial services firm with assets of $2 trillion and operations in more than 60 countries, to explore its options.
Sources claim that options AMD is currently investigation could include a potential sale as the company struggles to compete with Intel in both the desktop and mobile sectors. However unnamed sources claim that an outright sale is not the current priority. Instead, the company may focus on options like selling its portfolio of patents.
Currently the company is cutting costs and downsizing, and analysts fear that AMD may not find new markets for its technology in time to reverse the declining cash reserve. In this year alone, shares have fallen more than 60-percent, placing AMD's market value around $1.42 billion (Intel is $103 billion). The company also has $2 billion worth of long-term debt and capital lease obligations.
"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," the company said in an official release. "AMD is not actively pursuing a sale of the company or significant assets at this time."
After the Reuters exclusive report went live, AMD shares actually began to rise, jumping 5.03-percent to $2.35 in recent trading. In 2011 the company generated revenue of just over $6.5 billion, and as of late employs nearly 12,000 people.
Last month AMD said it would take an "ambidextrous" approach to its chips by combining ARM's 64-bit A-15 core architecture to its own x86-based Opteron processors for data center servers and cloud computing. The first ARM technology-based AMD Opteron processor is targeted for production in 2014 and will integrate the AMD SeaMicro Freedom supercompute fabric, the industry’s premier high-performance fabric.
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Kevin Parrish has over a decade of experience as a writer, editor, and product tester. His work focused on computer hardware, networking equipment, smartphones, tablets, gaming consoles, and other internet-connected devices. His work has appeared in Tom's Hardware, Tom's Guide, Maximum PC, Digital Trends, Android Authority, How-To Geek, Lifewire, and others.
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kog91 Correction: the A-53 and A-52 Cortex processors are the 64-bit ARM architecture that AMD is planning on using. A-15 is 32-bit and not suitable for large memory environments.Reply -
-Fran- I wonder what Otellini has to say about this...Reply
I'd love to hear his opinion about JP Morgan getting involved with AMD xD
Cheers! -
myromance123 People still try to put AMD's products in the same light as Intel's, but with Intel's market value of practically 100 times that of AMD's I'd have to say AMD's offerings are amazing in this perspective. It is very frightening though, the thought of an Intel monopoly. I really really hope it doesn't come to that.Reply -
kog91 gamerk316Bye AMD. Was a nice ride.Reply
AMD has been in this situation more than once, the end of 2008 for one. The problem is that people look at stock values and assume that is a measure of the success or failure of a company. That is simply not true. AMD has been at this game for a very long time. It may mean they need to reinvent themselves in terms of markets and tactics, but they are a long way off from ever throwing in the towel.
Or have you all forgotten that 20% of AMD is owned by the United Arab Emirates. With that kind of capital pool, revenue isn't the only piece of the story. -
cats_Paw Correct me if im wrong, but i was under the impression that AMD GPUs were having a decent run overall in the market.Reply
In processors they have been loosing for quite some time with intel, but i have no idea what they could work on right now... -
myromance123 @kog91 that's pretty cool information. I had no idea the United Arab Emirates owned such a large portion of AMD! Reading up on it now.Reply
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redeye ...JP Morgan... also at the center of that MASSIVE bail-out for the banking sector... so i don't see JP Morgan helping AMD... maybe they can find a suitable buyer?... (it is to strong to call JP Morgan a "Vampire" or "Bloor sucker" ... just slightly too strong...Reply -
shqtth Please oh Please oh Please someone fire that AMD ceo already.Reply
He is nothing but bad news for the company, and hes been screwing things up since he started.
AMD could of easily caught up, especially when they sold GF off and with that 1 billion from intel, but that money magically disappeared.
AND With the FX launch, he didn't have plan B. (faster clock Phenom II)
Also since AMD decided to not make high end parts, they lost touch with the enthusiasts, and they need those people as they are the people who recommend AMD to other people. Call them the sales people.
Anyways, AMD, if you want to go screw yourself, then please separate yourself from ATI, I want my canadian company back. The CEO and AMD can go F themselves together with the billions in stockpile, but give ATI back at least before you ruin it too.
I think the CEO of AMD must hang out with his fellow friends at the board of HP, as both seem to be equally retarded.