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AMD Hires Bank to Arrange Sale or Pursue other Alternatives

delta0 said:
ARM have a major advantage with the power efficiency of their processors which the regulation is going to cause Intel issues. The problem is competition rules are going to bite Intel if AMD stop the CPU side. Also the consumer would suffer with poor performing overpriced CPUs which is where the law will target.
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ARM do have the efficiency advantage, for now. But how long do you think that will last? the 3D Transistor and Haswall are already getting close to ARM's efficiency and this is their first real attempt to design a chip for the mobile market, 2013 another new chip with 14nm, next in 2015 its 10nm, then 7nm, then 5nm.

Intel know as well as everyone the PC market is no longer viable, so they are turning their attention to the mobile market, they are now gunning for ARM and i don't fancy ARM's chances, Intel will just plow vast amounts of money into it and go on a relentless marketing exhibition, i think it will end with ARM also on life support.
 
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humbug said:
ARM do have the efficiency advantage, for now. But how long do you think that will last? the 3D Transistor and Haswall are already getting close to ARM's efficiency and this is their first real attempt to design a chip for the mobile market, 2013 another new chip with 14nm, next in 2015 its 10nm, then 7nm, then 5nm.

Intel know as well as everyone the PC market is no longer viable, so they are turning their attention to the mobile market, they are now gunning for ARM and i don't fancy ARM's chances, Intel will just plow vast amounts of money into it and go on a relentless marketing exhibition, i think it will end with ARM also on life support.
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I agree. I think if AMD do stop contributing to this market the lawyers will suddenly appear and be watching them closely. It is not in Intel's interest to lose all competition. It would be interesting to see how the market changes.
 
delta0 said:
It would be impossible for Intel to buy them, the competition law would stop it. The law would also not allow Intel to monopolise the market either.
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intel already effectively have a monopoly on the PC market as AMD's turnover is only 6% of what Intel's is and the only other x86 producer (VIA) is even smaller than that... so intel already have over 90% market share in the windows desktop PC market (and provide chips to Apple for their desktops aswell)

please show me what THE LAW is doing to prevent this from already having happened?

the law also can't stop someone buying AMD and shutting down it's PC chip section, which would end up with the same situation as intel buying it
the law can't stop AMD from over-pricing it's own chips so that they are not competitive against intels, which is what is already happening
 
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Intresting article here from an investor

It seems that every time shares of Advanced Micro Devices (AMD) hit new multi-year lows, a new buyout rumor citing "anonymous sources" followed by a sharp, intra-day short-squeeze follows. This happened back in August, which led to shares of the company spiking up about 8% intra-day before almost immediately calming back down and continuing its downward spiral.
The same thing happened today; AMD moved from an intra-day low of $1.97 to hit $2.30 before closing up only 5.03% at $2.09 on rumors that AMD has hired JP Morgan (JPM) to explore options. AMD denied the rumors within a few hours of the initial rumor. There's a simple reason why this was not likely to be true and this is a way to detect if such rumors are fake in the future.
Recent Insider Transactions Tell A Different Story
We see that there have been a number of insider transactions within the last couple of weeks. Lisa T. Su, Senior Vice President and General Manager of Global Business Units just a few days ago purchased 48,000 shares at an average price of $2.05. If AMD were exploring a sale, and this information were known privately before the public "knew", then this would likely be insider trading on non-public, material information.
Further, Director Craig Conway recently sold 5,000 shares at an average price of just over $2.05. Why would he do so if he were aware of any impending plans to put the company - or its patents - up for sale? Would he really continue to dump his shares knowing that this is a very real possibility? The likelihood of him being unaware of any potential need to put the company or its IP for sale is low, so it, once again, makes no sense.

The Street Agreed
The spike intra-day was very short-lived. After going up nearly 20%, the stock managed to fade quickly into the close, and in the after-hours session lost the remainder of the gains from the day. With the massive short-interest on the stock, I would suspect that the short sellers would be a lot more cautious about their positions (and continue to cover over a longer period of time) if they believed that this rumor was anything close to credible.
Conclusion: Be Careful
Don't buy near the top on these "rumors" - most of the time they are completely fake. If you happen to be in before the spike, consider selling into huge intra-day rallies like this, but don't chase a company with deteriorating fundamentals on the basis of what some news site heard from "anonymous" and "unconfirmed" sources about a buyout. In any case, while I believe a sale of X86 patents to Intel (INTC) or graphics patents to Nvidia (NVDA) may be likely in the case of near-bankruptcy conditions in the longer term, it is still far too early for the firm to cut away what little intellectual property it does have for cash.
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Seems that some big wigs have been buying large amounts of ever declining AMD shares and the next thing you know there are rumours AMD are selling up, what happens... their shares spike and someone makes a lot of money.
 
psychodil said:
I had heard that AMD have substantially reduced their overall debt over recent times. Will have to look for a link.
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Over the past few years, yes, from what i think was about $8bn to $2bn now.

This is why they have been posting losses and small profits in the recent years quarters, they have been chipping away at that debt, taking large chunks off it at a time.
They have done quite well on that, the only problem is they have had very limited resources for R&D during that time.
May well be why the Bulldozer project took years to realise and then turned out to be a lemon.
 
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delta0 said:
It would be bad news for us all. A real shame. I can see someone taking over it rather than it going though.
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I hope so, someone with some serius money.

there is some oil baron (i think his business is oil) from the middle-east with ridiculous amounts of money who already has a 20% stake in AMD, and has done for some time, and he's just been 'actually' appointed to the board, literally a week or so ago.

Maybe he can be persuaded to hand over some of that oil money.
 
Stanners said:
The ironic thing DM is you predicted that Nvidia would go broke a year or two ago(quite strongly if I remember correctly). Hope you sold your AMD shares when the price was good.
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Was chuckling about this earlier - he wasn't the only one prediciting gloom and doom when nVidia went through a rocky patch and they weren't even close to the state AMD has been going through recently - then when I mentioned about the AMD issues recently I got the same people (sans DM who I haven't seen replying to any of my posts on the subject) tell me I'm talking rubbish and don't understand financial data lols.

This could be quite tricky for AMD as while the company has many parts that are worth a lot to an investor (the GPU side and some specific parts of its core business) the overall business is heavily tied up in licensing and legal issues such as the x86 rights that would make it far too much of a liability for anyone to take on wholesale. Leading to the only way for another party or parties to take over the business would be to break it up and people aquire the worthwhile bits separately. TBH tho theres no good reason for the company to go down that route they just need to cut some of the deadwood in management/find some way to get shot of some of the directors and rehire some decent people in engineering and other design/development/technical depts and let them do their thing without overly interferring. Tho they also need some leniency in the short term on cashflow and this is something a lot of people with a stake in the company have been reluctant to do recently hence quite a bit of the reason (other than management bungling) why they are in the position they are today.

humbug said:
Intresting article here from an investor



Seems that some big wigs have been buying large amounts of ever declining AMD shares and the next thing you know there are rumours AMD are selling up, what happens... their shares spike and someone makes a lot of money.
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This happens quite a lot (but I don't think it can be blamed as the core reason for the recent (longterm) decline in AMD's share price other than the recent spikes like the one specifically mentioned - AMD must be a shorters paradise in decline) seen it happening with a number of UK retailers, deliberatly brought to their knees by insiders and/or via rumours from less scrupulous traders and then bounced the other way again when they please so as to make a bit of cash in the short term even if it means savaging the companies long term future.
 
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humbug said:
ARM would need to find away to compete with Intel on performance to have any chance at all on the PC market.

ARM themselves are facing serious challenges from Intel in their own back yard right now, ARM have their own foreseeable problems, the last thing they need is to take on the vast giant on their own soil, they'll get crushed like an insect.

Much like whats happening to AMD now.
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the motorola razr i, is proof that intel can compete in the mobile segment, and thats with a single core 5 year old cpu architecture.
next year will mark the end of arm as intels new atom cpu comes out with a whole new architecture and out of order execution, expect even lower power consumption and a considerable hike in performance per clock.
 
you know they had issues when they hid thier manufacturing assets under then name of global foundaries. normal thing any company does when its going under.

cpu market will become a one horse race, and as long as intel are sensible about the prices then there is nothing to worry about.

amd has a decent run in the past but got too cockey for themselves.
 
Oh something I meant to say earlier and forgot - I suspect people are mis-understanding what AMD is doing (with the talk og JP Morgan, etc.) - they are probably exploring options for managing short term operations with minimal disruption to the long term viability of the company rather than looking at a managed sell off of the company or some of its assets.
 
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