Private equity to buy 20 per cent of AMD

[arc@css]

Until they know what this company plans to do with that 20% it is neither good or bad news.

+1

 

[LambChop]

Until they know what this company plans to do with that 20% it is neither good or bad news.

There's not a lot they can do with no controlling stake.

 

[mmj_uk]

Absolutely not, they just wouldn't be able to buy the 20% they hold, unless they made a ridiculous offer to buy SL's stake.

Will it make AMD less attractive to other potential buyers then? ie. could Silver Lake just be staking their claim in AMD for when they're cheaper to buy?

 

[JediFragger]

Well hopefully they can help to stop the rot and make AMD lean and mean!!!

 

[LambChop]

Will it make AMD less attractive to other potential buyers then? ie. could Silver Lake just be staking their claim in AMD for when they're cheaper to buy?

There's major investors in all large corporations. It's a normal part of life for them. If AMD is taken over they will need to own a controlling stake, wither that's paid for by stocks, cash, assets etc who knows.

Would It make them less attractive ? I think it makes them ripe for a takeover personally. AMD shouldnt have needed a cash injection unless they are haemorrhaging money. AMD could have sold them 20% as thats all they wanted to give away. It leaves enough equity for their current investors, and enough for someone to come in and take them over and have control. SL could be in line for a nice little earner.

 

[Jim99]

Will it make AMD less attractive to other potential buyers then? ie. could Silver Lake just be staking their claim in AMD for when they're cheaper to buy?

Silver Lake will be in this for only one reason - profit.

So if another buyer comes in and makes a good offer over the odds, there's a good chance they'd consider taking it and rake in the profit.

I don't think it changes much.

 

[Gregster]

I am not overly clued up on big business but I seriously considered putting a few grand on AMD shares but my bottle went and I didn't. Not sure I can afford to take that kind of gamble but part of me still wants to.

 

[Howling]

I am not overly clued up on big business but I seriously considered putting a few grand on AMD shares but my bottle went and I didn't. Not sure I can afford to take that kind of gamble but part of me still wants to.

Genuinely, I can't see the stock going much lower. And as the great Yazz said - the only way is up, babyyyy. I half wish I hadn't bought the new rig just so I had that money to invest, but I needed the new rig =(

 

[Rroff]

For someone/entity for whom 20% is relatively speaking "pocket change" its a potentially worthwhile gamble - their losses would be "minimal" if it didn't pay off with the potential for it to be lucrative in the long term.

 

[old gamer]

I am not overly clued up on big business but I seriously considered putting a few grand on AMD shares but my bottle went and I didn't. Not sure I can afford to take that kind of gamble but part of me still wants to.

fortune favors the brave, or so they say

 

[Klunt Bumskrint]

Ah you made the edit, nevermind. Was gonna say it's at least 500m

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...

You already have 20% of AMD.......you have 2 Fury X's...

 

[Scougar]

Is this them just buying 20% worth of shares, or something else?

 

[Streetlight]

I am in for a few k @ 2.2...

looking to add if we get back to $1.6....

aiming for around $8 in a few years time.

 

[kitch9]

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.

At 20% they wouldn't be able to sell anything without the rest of the owners agreeing.

 

[arc@css]

You already have 20% of AMD.......you have 2 Fury X's...

Haha.

 

[andybird123]

Is this them just buying 20% worth of shares, or something else?

Yes and no, they are buying previously unissued shares, so it's a direct cash injection for AMD (there were around 750k shares on the market, with AMD holding 650k - AMD actually sold off 50k shares about a year ago, now they are selling off another 300k or there abouts)
if they were just buying shares that were already on the open market then the cash would be going to general shareholders, with AMD being the shareholder in this case the cash goes to AMD

 

[Sencha]

You already have 20% of AMD.......you have 2 Fury X's...

 

[Dave2150]

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.

Somewhat ironic that this 'flailing' company has superior DX12 support and performance to NVIDIA.

 

[Gregster]

Somewhat ironic that this 'flailing' company has superior DX12 support and performance to NVIDIA.

I am sure you look at anything I post and look for anything to rip apart. Grow up mate, it is a story that I gave my thoughts to.

 

[Marine-RX179]

Somewhat ironic that this 'flailing' company has superior DX12 support and performance to NVIDIA.

The thing is though...that doesn't help enough to turn into sales for AMD.

Like lots of great headphone brands and companies, with all their superior products and offering better components at lower price, they don't turnover nearly as much as Beats, so don't underestimate the impact of personal preceived sense of "superiority" or "coolness" when it comes to purchase.