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Private equity to buy 20 per cent of AMD

Gregster

Gregster

Gregster

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EXCLUSIVE: Silver Lake also owns a chunk of Dell

Our well informed industry sources have told us that AMD is about to sell 20 percent of its stake to a private equity outfit called Silver Lake.

Fudzilla got this from multiple, independent industry sources that want to remain anonymous. Silver Lake was the outfit which was behind Michael Dell's take over of his company and has piles of cash.

The company advertises itself as a global leader in technology investing and that have invested money in brands like Alibaba, Avago, GoDaddy,Motorola Solutions, Opera Solutions and many others has prepared to bite the significant part of AMD.

This could be AMD's big break as it will get the money that it desperately needs. AMD has been sinking under financial problems as its CPU roadmap is not that great and it is hard for AMD to compete with Nvidia in the mainstream and entry level graphics market.
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http://www.fudzilla.com/news/processors/38694-private-equity-to-get-20-percent-of-amd

Some good news at AMD and good to see that some highly respected investors have bought into this flailing company. Much needed I say and great stuff.
 
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It's the company itself that's poison. I certainly wouldnt invest in them at the rate they are losing money. Unless I was taking full control I'd stay clear of that ship.
 
Private equity aren't known for throwing money away so they obviously either see something worth investing in and improving or worth breaking up and selling off. Lets hope for our sake it's the former.
 
LambChop said:
It's the company itself that's poison. I certainly wouldnt invest in them at the rate they are losing money. Unless I was taking full control I'd stay clear of that ship.
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If big PE are getting involved then they must seem some strong value somewhere.

Of course the question is whether they view it as sustainable value, though if they remain at 20% holding it probably has to be.
 
Jim99 said:
If big PE are getting involved then they must seem some strong value somewhere.

Of course the question is whether they view it as sustainable value, though if they remain at 20% holding it probably has to be.
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They may have seen the upcoming products such as Zen and the Arctic Islands GPU's. Could be potentially great products in the pipeline.

To take a 20% stake means they will have done plenty of research before putting their cash in.
 
with how low the share price is, something like this was a given, great for AMD's sake that its private equity rather than a takeover of sorts, and hopefully they can get some revenue going from a deal with Dell

although, unless my maths is off, 20% of AMD is still only about $280m at the current prices

edit, my maths is off, Shares outstanding is 1.46bn but total value is 2.9bn, so 20% as additional shares would be nearly $600m
 
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PE buyouts, partial or not can be a very good thing, the company I work for, a few years ago, was weeks away from folding due to poor management, PE firm worth somewhere north of £10bn stepped in, purchased us for next to nothing and we now turn over more then £100m a year with a healthy profit margin. They stick money and people in the right places, cut the dead weight and watch their investment grow :)

Very good news for AMD IMO.
 
fs123 said:
They may have seen the upcoming products such as Zen and the Arctic Islands GPU's. Could be potentially great products in the pipeline.

To take a 20% stake means they will have done plenty of research before putting their cash in.
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Doesnt matter if they have great products when the market clearly doesn't buy them. To me, AMD have probably talked a very good game to get the cash they need. I'm going to be very interested to see what they blow it on.
 
LambChop said:
Doesnt matter if they have great products when the market clearly doesn't buy them. To me, AMD have probably talked a very good game to get the cash they need. I'm going to be very interested to see what they blow it on.
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You may not buy them but if the next AMD cards are faster than Nvidia's do you think the market would ignore them? Past history shows that people will buy the fastest no matter what brand it is.
 
andybird123 said:
with how low the share price is, something like this was a given, great for AMD's sake that its private equity rather than a takeover of sorts, and hopefully they can get some revenue going from a deal with Dell

although, unless my maths is off, 20% of AMD is still only about $280m at the current prices

edit, my maths is off, Shares outstanding is 1.46bn but total value is 2.9bn, so 20% as additional shares would be nearly $600m
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Ah you made the edit, nevermind. Was gonna say it's at least 500m :P

Ontopic; Damn they beat me to it. I was just gonna dip into my back pocket and buy 20% of AMD :( In all seriousness though, if I had a few grand going spare I'd be picking up AMD stock right about now. Unfortunately I just built a new rig so...
 
LambChop said:
Doesnt matter if they have great products when the market clearly doesn't buy them. To me, AMD have probably talked a very good game to get the cash they need. I'm going to be very interested to see what they blow it on.
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Because all it takes to pull the wool over the eyes of a massive PE company is talking a good game lol
 
fs123 said:
You may not buy them but if the next AMD cards are faster than Nvidia's do you think the market would ignore them? Past history shows that people will buy the fastest no matter what brand it is.
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AMD have had faster cards in the past and the market has ignored them, nothing is going to change now. They need to pump a hell of a lot of that money into Marketing, R&D etc before anyone buys more.
 
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