Here we Go!

pelo

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So it begins!!!

Who do you guys think ATi will be sold off to? I'm betting Apple will want some o' 'dat.
 

Tsumi

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I doubt AMD and ATI will be separated in any circumstances.
 

Tsumi

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Original source has been updated, AMD is not actively looking to sell out at this time.

Source, go to update at bottom.
 

Forceman

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Original source has been updated, AMD is not actively looking to sell out at this time.

Source, go to update at bottom.

Well, you'd kind of expect them to deny it, so that's not surprising. Selling the patent portfolio (one of the listed options) doesn't sound like a long-term solution either.
 
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Why would apple buy ATI? They only use nvidia graphics apart from the 3 generation old 5870/5770. Maybe for increased profits, but it would cost billions
 

pelo

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I doubt AMD and ATI will be separated in any circumstances.

x86 is all but useless to anyone other than VIA and IBM as it would void cross-licensing agreements with Intel. Apple or Samsung (insert anyone without an x86 license here) couldn't buy AMD's x86 license unless the agreement was willingly reworked with Intel, and that ain't gon' happen. If somebody is looking to buy something from AMD the graphics are the only division that's of any value to the market at large. It doesn't look like they're selling SeaMicro as that's the only thing we know AMD will be producing post 2014, so ATi/graphics might be the only thing up for sale.

The other question to ponder is just what that means for Intel's sales if AMD does kick the bucket? Would OEMs and customers line up to buy x86 if they're the only company producing them? Probably, but are they going to be a lot more reluctant to dive into a monopoly? You bet your ass :p
 

teletran8

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* Update

Soon after we clicked Publish on this story, we received a comment from an AMD spokesman. "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," he wrote. "AMD is not actively pursuing a sale of the company or significant assets at this time."

Guess your wrong OP. :D
 

Centauri

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Apple or Samsung (insert anyone without an x86 license here) couldn't buy AMD's x86 license unless the agreement was willingly reworked with Intel, and that ain't gon' happen.

Don't be so sure. The DoJ doesn't have a lot of love for Intel, neither does the EU.
 

09Avenger

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I really hope AMD can survive. Imagine what would happen to x86 prices if Intel have no competition.
 

pelo

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Don't be so sure. The DoJ doesn't have a lot of love for Intel, neither does the EU.

No, but it would be more difficult to argue a monopoly in today's market. Your smartphone is just as much a PC as your desktop, and in that regard ARM SoCs outsell x86 by a very substantial margin. It would be seen as Power with IBM or Itanium with HP/Intel or even MIPS, in that those are all technically monopolies just like a hypothetical Intel-only x86 monopoly would be, so it's a matter of market share and sales.

10 years ago there weren't many alternatives (outside of server, though Apple was dabbling in RISC), but today that landscape has changed completely.

Given today's market and current trends, Intel is likely to be more afraid of company's opting for ARM and the risk of being the only x86 maker than they are of any potential forthcoming litigation. Will OEMs buy an Intel CPU if it costs 5x more than ARM if ARM can do it for cheap and do nearly all of it as well? I highly doubt it. Consumers have already spoken, with x86 sales decreasing by the highest margin in 10 years and it's not looking any better for them.
 
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Forceman

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* Update

Soon after we clicked Publish on this story, we received a comment from an AMD spokesman. "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," he wrote. "AMD is not actively pursuing a sale of the company or significant assets at this time."

Guess your wrong OP. :D

What do you expect them to say "oh, yeah, we're selling this shithole out as soon as we can find a big enough sucker to buy it"? Notice the weasel language of "we aren't actively pursuing ... at this time" - considering they just signed the deal today, apparently, they haven't started anything yet. Doesn't mean they don't plan on it though, or do you think they hired JPMC for fun, because as far as I read they didn't deny hiring them.
 

psy81

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I'm betting that AMD will pull out of this. Their APUs "should" be utilized by more and more mobile devices (i.e. tablets and notebooks) and hopefully smart phones. I think they are on the right track. It would be a sad day if AMD did sell out. Steamroller is also expected to be a much bigger jump in performance compared to Piledriver.
 

teletran8

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What do you expect them to say "oh, yeah, we're selling this shithole out as soon as we can find a big enough sucker to buy it"? Notice the weasel language of "we aren't actively pursuing ... at this time" - considering they just signed the deal today, apparently, they haven't started anything yet. Doesn't mean they don't plan on it though, or do you think they hired JPMC for fun, because as far as I read they didn't deny hiring them.

AMD is awesome now go play your 2600k Forceman, derrr. :D
 
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teletran, it isn't 2003 anymore... Intel has pounded them so far into the ground from a combination of Intel's massive progress and AMD's repeated screw-ups that they're lucky their graphics division has been keeping them afloat. Which is another curiosity, mind you. If you're such a hardcore, blind-to-reality AMD fan, why are you using an Nvidia GPU?
 

gamerk2

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On the CPU side, the ONLY thing attractive about AMD is the X86-64 license, as the Intel X86 license is non-transferable. The ATI side of the house is far more attractive, so I wouldn't be shocked if the company breaks up and the GPU side of spun off (admitting the ATI purchase was a horrid mistake).
 

Weeth

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Sounds like a perfect time to buy AMD stock.

I respectfully cannot agree with your conclusion. The stock spiked to about $2.30 late yesterday when it looked like they were going to sell outright but now that it seems that JP is just going to rip off chunks and pitch them separately it's just opened at $1.99. One way express to junk stock... next stop... ;)
 

Weeth

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On the CPU side, the ONLY thing attractive about AMD is the X86-64 license, as the Intel X86 license is non-transferable. The ATI side of the house is far more attractive, so I wouldn't be shocked if the company breaks up and the GPU side of spun off (admitting the ATI purchase was a horrid mistake).

Nah, ATI was a great deal! $7B spent just to end up with a total combined Market Cap of $1.4B. Buy high, sell low is a phenomenal business strategy.

http://www.youtube.com/watch?v=wFyV6pd2YUQ&feature=youtube_gdata

Given the magnificent way he decimated AMD and his Galleon insider trading, maybe instead of the UofT Award Ruiz should have received an orange jumpsuit.
 

ManofGod

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Nah, ATI was a great deal! $7B spent just to end up with a total combined Market Cap of $1.4B. Buy high, sell low is a phenomenal business strategy.

http://www.youtube.com/watch?v=wFyV6pd2YUQ&feature=youtube_gdata

Given the magnificent way he decimated AMD and his Galleon insider trading, maybe instead of the UofT Award Ruiz should have received an orange jumpsuit.

I think he should have said I am so fortunate that I ran AMD into the ground and got away with it. :(
 

Flyboat

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I think collapse of AMD is due to poor management, and poor maketing strategies. AMD failed to take advantage of ATI. I think after they bought it ATI, nobody knows what to do with it.
 

pelo

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I think collapse of AMD is due to poor management, and poor maketing strategies. AMD failed to take advantage of ATI. I think after they bought it ATI, nobody knows what to do with it.

Execution and delays by the management killed the company (as far as I'm concerned they're dead already, it's just a matter of when now not if).

Bulldozer was delayed by years, Llano by a half a year to a year, the Bobcat 28nm successors were flat out cancelled and replaced by Temash/Kabini which meant a 28nm product was delayed by a year.

This entire time AMD's best selling products, making them the most money that is, have been the Bobcat netbook APUs. Why? Because that's the one place in the entire x86 world that AMD has put an absolute whooping on Intel since the original AMD64 Venice cores. They beat Intel in every single measurement yet that was the product that was delayed by a year and essentially ignored in favor of Bulldozer and the mess that it became.

So instead of going after a sure thing, a bobcat successor that offered low TDP, great performance, 64-bit compatibility (have fun with your new Win8 tablets and 32-bit and 2GB RAM limitations with lower than netbook performance) and a low price while still absolutely whooping Intel's Atom, they focused their efforts on the CMT approach in Bulldozer. Rather than embracing the potential goldmine they had in their low end APU architecture, AMD decided to ignore it and opt to cater to the dying desktop PC/server space and tend to the high end x86 race they would never win.

This wasn't just a Ruiz problem, it was a Dirk Meyer one as well.
 

thomasward00

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Business is tough for just about every industry and will continue to be for at least the next 4 years. Having just built an FX6300 system, I know that this will be my last desktop CPU, in the future it will be an APU.

The AMD brand won't die, even if they are bought out.
 

MasonD

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Can someone tell me what happens to the current shareholders if AMD is sold?
(Yes, I'm noob)
 

pelo

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Can someone tell me what happens to the current shareholders if AMD is sold?
(Yes, I'm noob)

Apparently AMD isn't actively pursuing a sale of its patents and IP blocks but they aren't in a position to turn down a good offer either. The outright sale of AMD isn't just unlikely, it's quite frankly a death wish for any potential buyer because of all that it implies -- losing the x86 cross-licensing agreement with Intel and cross-licensing b/w AMD/nVidia as well.

So AMD's shareholders aren't going to see AMD disappear if there is a sale, but given their need for an immediate injection of cash in order to survive through 2013 it's quite possible the stock rebounds if AMD does announce a sale of patents/IP.
 

Weeth

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You don't call in JP unless you've got something you want to pitch around and AMD has precious little other than the absolute basics left. Of course they weren't going to formally announce that the For Sale sign is up as that would pump up the stock price and make the potential buyer(s) less likely to want to make a deal. Standard operating procedure in cases like this. You want your company to be for sale without anyone thinking that it is for sale. As to who would buy it... I think nobody. I think that sooner or later AMD might just disappear inside of ARM and that will be the end of that.
 

maxius

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ok let me toss my two thousand cents in here
#1 amd is not going to spin off ati as it would murder their apu's and the current ip strategy that they are currently executing to a T. this is why they are using an off the shelf arm 64 bit cpu ip block and combining it with their own ip blocks...

#2 amd x86 business is going well since the introduction of the apu. amd's focus for 2013 is on mobile with refreshes of existing parts trinity 2.0 piledriver 2.0. the only new products are 28nm mobile and tablet apu's with 2/4 cores with cpu/graphics that outperform intel's atom soc in terms of raw performance, graphics performance and power usage

yes their is no top end momentum this is due to the new hires in charge reworking the road-map and processors cause honestly 5 - 15% improvement for a modern cpu is laughable due to the time frames we are looking at the new hires would have to of dug right in and changed things asap to do a complete top end rework and have it ready by fall 2014 i could be wrong or i could be right we have a year to wait and see

As for talking with jp Morgan prob further restructuring on amd's old fab debt or engineering a reverse stock split or crazy things like taking the company private (seems reasonable) or bankruptcy (again reasonable) or something similar to metro pcs and tmobile's recent reverse merger with the current parent of tmobile still controlling a majority stake in company.

Let me repeat again amd is not going anywhere it has had some rough times before and always came out swinging

http://www.fool.com/investing/general/2012/11/14/is-amd-looking-at-a-buyout.aspx
 
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maxius

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You don't call in JP unless you've got something you want to pitch around and AMD has precious little other than the absolute basics left. Of course they weren't going to formally announce that the For Sale sign is up as that would pump up the stock price and make the potential buyer(s) less likely to want to make a deal. Standard operating procedure in cases like this. You want your company to be for sale without anyone thinking that it is for sale. As to who would buy it... I think nobody. I think that sooner or later AMD might just disappear inside of ARM and that will be the end of that.
I disagree

"Drew Prairie, AMD's longtime press contact, I was told in no uncertain terms that there's no deal on the table: "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. AMD is not actively pursuing a sale of the company or significant assets at this time." In other words, AMD believes in its strategy and isn't interested in any major strategy shifts. Thanks for asking.
Cynics might ask whether AMD really means it, or just wants to cover its tracks. But the SEC wouldn't look kindly on unambiguous denials of game-changing deals that turn out to be in progress after all. Misleading investors might even qualify as fraud, and nobody in AMD's offices wants any of that action. A simple "no comment" might keep the buyout rumor alive, but this statement kills it."

http://www.fool.com/investing/general/2012/11/14/is-amd-looking-at-a-buyout.aspx
 

Weeth

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Posted with no comment (as it speaks for itself)

http://blogs.marketwatch.com/thetell/2012/11/15/amd-finds-a-cool-reception-among-investors-analysts-in-falling-market/

Bernstein Research analyst Stacy Rasgon’s view of the company’s prospects has gotten so bad, he has described AMD as “uninvestable. I use that word lightly,” he told MarketWatch. “I’m terrified of the stock. … Their competitive position does not look super, and they’re burning cash.”

AMD stock at $1.87.

Turn out the lights, the party's over, it's true that all, good things must end...
 

exlink

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I thought that both Sony and Microsoft went to AMD for chips in their next generation consoles (unless something has changed, haven't been keeping up lately). Wouldn't this boost AMD's economic standings?
 

ccityinstaller

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I thought that both Sony and Microsoft went to AMD for chips in their next generation consoles (unless something has changed, haven't been keeping up lately). Wouldn't this boost AMD's economic standings?

All three console makers went to AMD IIRC..
 

MasonD

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All three console makers went to AMD IIRC..

Things like this and the fact AMD isn't even in that bad of debt compared to where they've actually been before, I just don't see AMD going anywhere. Of course they need to restructure and adapt but AMD being no more, no way!
 

maxius

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Posted with no comment (as it speaks for itself)

http://blogs.marketwatch.com/thetel...n-among-investors-analysts-in-falling-market/

Bernstein Research analyst Stacy Rasgon’s view of the company’s prospects has gotten so bad, he has described AMD as “uninvestable. I use that word lightly,” he told MarketWatch. “I’m terrified of the stock. … Their competitive position does not look super, and they’re burning cash.”

AMD stock at $1.87.

Turn out the lights, the party's over, it's true that all, good things must end...

hold on let me put up a blog and take market conditions and trash insert company here. not everything you read on the interwebs is true i will wait for an official announcement from amd before i would take this market watch jack hole's word any day. amd still has contracts to make the ps4 and xbox 720 hell the wii u just launched and amd is getting cash from that the lights are on and the party as you call it is far from over.
 

pelo

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I thought that both Sony and Microsoft went to AMD for chips in their next generation consoles (unless something has changed, haven't been keeping up lately). Wouldn't this boost AMD's economic standings?

That depends on how the terms were worked out.

For the Xbox360, AMD got a crappy one-time payment that amounted to very little whereas with the Nintendo Wii they got royalties per unit sold and it turned out to be big cash.

The issue AMD currently has is not longterm success but rather enough money to survive the next year. If console $$$ will be based on unit sold then that doesn't do AMD any favors as they won't be making any money for at least a year and it will only be considered profitable if the consoles succeed over a longer period of time.

Keep in mind AMD has a market cap of approximately under 2billion. Any number of large tech companies can pitch in the cash just to buy AMD and then start selling off IP and patents for cash.
 
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