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Advanced Micro Devices, the world's second largest supplier of central processing units for PCs, is rumoured to be a takeover target again. This time some believe that AMD may be the company to be acquired by Dell, the world's third largest maker of personal computers.

“There is no management team there. There is some chatter that the company is up for sale. It is a far-fetched possibility," said Patrick Wang, an analyst at Wedbush Securities, reports Bloomberg news-agency.

In the last one and a half month AMD has lost if chief executive officer, chief operating officer and chief strategist. Thomas Seifert, chief financial officer of AMD, is acting as interim chief exec and does not want to become a permanent CEO for the chip designer, whose market share has been on the decline for several years now and which only managed to become profitable in 2009 and 2010 after years of losses since 2006.

Rumours about possible acquisition of AMD emerge pretty regularly. AMD remains independent chip designer. This time, however, some believe that the buyer could be Dell, the company that has never developed almost anything itself, but concentrated only on design and distribution. Still, in the recent quarters Dell has been pretty active with its takeovers, therefore, a potential transaction cannot be 100% excluded. In case the rumours are correct, the deal will mark a major change of Dell's strategy.

Advanced Micro Devices has a pretty interesting product portfolio: it develops various central processing units for desktops, notebooks and servers as well as graphics processing units for various types of computers. Unfortunately, AMD lacks technology for smartphones, tablets and some other promising form-factors, which makes it a less interesting target for consumer electronics companies.

AMD and Dell did not comment on the news-story.

Tags: AMD, Dell, Business

Discussion

Comments currently: 23
Discussion started: 02/14/11 07:25:01 PM
Latest comment: 02/17/11 03:32:24 AM
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[1-18]

1. 
"Dell may be the company to be acquired by Dell"

So, Dell is going to try to buy themselves? lol
0 0 [Posted by: SteelCity1981  | Date: 02/14/11 07:25:01 PM]
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2. 
It would seem unusual for AMD to put themselves up for sale at such a critical time. A new processor architecture and solid goals, it would be a slap in the face to sell the company now. AMD does have good leadership, their board of directors. They are just in a change of management more appropriate for their situation.
0 0 [Posted by: evernessince  | Date: 02/14/11 08:35:22 PM]
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- collapse thread

 
AMD never had good leadership Well at least not in 2000s and that in that period they had several design wins.
And "it would be unusual fo AMD to went under takeover" only for those which never oversaw pricey and non-lucrative ATi tajeover by AMD as bad move.
Takeovers are good for stocks and AMD needs a bubble.
0 1 [Posted by: OmegaHuman  | Date: 02/15/11 05:08:43 PM]
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3. 
While I can't exclude the possibility, as Dell is the type of company X86 makes the most sense for (and others have mentioned HP), I've wondered since this emerged if it was speculation based on this:

http://www.techeye.net/bu...d-insider-trading-charges

I (still) think there needs to be some kind of strategic rearrangement between IBM, ATIC, and AMD. That's just one guy's random speculation though.
0 0 [Posted by: turtle  | Date: 02/14/11 09:19:26 PM]
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4. 
No. Just no.
0 0 [Posted by: FLA  | Date: 02/14/11 09:37:19 PM]
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5. 
If not Dell, and not HP, then who?

There's always the the fruit company as a dark horse.

In reality no one else makes viable sense and now more than ever a takeover possibility seems realistic simply BECAUSE of the whole (seeming) lack of management and mobile plans. To deny the possibility is very real is just ignorant in my opinion. While one can argue the possible ulterior motives of the BOD, to be bought by a company that would leverage their technology/IP in products in both their established/emerging spaces as well as those they wish to enter (and all three of the possible acquirers already exist in) sure makes sense to me.
0 0 [Posted by: turtle  | Date: 02/14/11 10:04:08 PM]
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6. 
NVidia is the only interested buyer, excluding China and ATIC of course.
0 0 [Posted by: Azazel  | Date: 02/14/11 11:03:45 PM]
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Hahaha ... LOL What nVidia wanna help intel now?! and leave market with only one licenced x86 procesor on the market. Nice job zazlyo.
0 1 [Posted by: OmegaHuman  | Date: 02/15/11 05:10:25 PM]
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7. 
IBM could throw their hat into the mix. They have been out of the pc consumer market ever since apple switched to Intel. Now that's a company I wouldn't mind AMD being bought from. IBM could implement their technology in future AMD chips and really give Intel some serious competition.
0 0 [Posted by: SteelCity1981  | Date: 02/15/11 02:30:30 AM]
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8. 
I also see IBM showing some interest here. They've been rumoured to want to purchase AMD before, and in my mind them buying AMD makes more sense than Dell or HP buying them.
0 0 [Posted by: GavinT  | Date: 02/15/11 03:12:29 AM]
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9. 
Too bad they couldn't make Dave Orton CEO. He'll probably kick some asses.
0 0 [Posted by: Zoomer  | Date: 02/15/11 06:32:26 AM]
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10. 
it will be a huge mistake for AMD to let be bought by DELL.

Dont forget: DELL always made the game for Intel. They always delayed to adopt also AMD processors in their market 5-6 years ago.

DELL was helped by INTEL in 2007-2008.

Is a mud game of Intel to escape from the pressure of future BULDOZER architecture. If DELL get AMD, then adios AMD CPU's to challenge INTEL in the market

I believe shareholders of AMD are hungry... but first of all they have to be intelligent and cautious.

The buyer dont have always good intensions
0 0 [Posted by: tbaracu  | Date: 02/15/11 08:09:14 AM]
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How does this guy ^ manage to post 4 times, every time i hit back or forward the site freaks out i'm trying to double post.

Dell' who's barely profitable and constantly loosing market share, will surely be able to buy AMD to scuttle it (thus wasting what they paid for it) to make intel happy. Yep sounds logical to me /sarcasm

I'm surprised no ones mentioned the fact that Apple keeps saving up money and hinting they're about to make a big purchase. They have enough cash to buy AMD 3 times probably. Imagine them merging their ARM core developers with AMD, to make some interesting products for tablets with maybe 2 x86 cores that can turn off, an arm core for low power standby, and some gpu cores. (Of course programming for that would be frightening)

I hate apple though so please let me be wrong.
0 0 [Posted by: cashkennedy  | Date: 02/15/11 10:02:33 AM]
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11. 
buy and dismantle! :-)
0 0 [Posted by: dudde  | Date: 02/15/11 09:02:42 AM]
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12. 
I don't see why Dell would want to buy AMD, they'd always been Intel and Dell has been bleeding a lot of money lately. Makes no sense.

Also, I can't see why they want a chip designing company. If they really want one, why not one with an ARM license, or license one themselves. ARM is where it's at if they are looking forward to the future.
0 0 [Posted by: deltatux  | Date: 02/15/11 04:54:06 PM]
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13. 
How many comments. It might seem real news that marsians took over the government.
0 0 [Posted by: OmegaHuman  | Date: 02/15/11 05:11:46 PM]
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14. 
Remember the hissy fit intel had over the x86 license when amd spun off its fabs to create global foundries. LET ME MAKE THIS CLEAR THE HUGE HOLE IN A COMPANY BUYING AMD THEORY IS IF AMD IS PURCHASED THE X86 LICENSE IS INVALIDATED. SEEING THAT IT IS NON TRANSFERABLE TO THE NEW COMPANY PERIOD END OF STORY RUMOR DEAD.
0 0 [Posted by: maxius4  | Date: 02/15/11 09:38:01 PM]
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Yeah it's pointless for Dell to buy AMD. About the only company that can buy AMD is IBM since it has it's own x86 license and could ruin Intel's day with patents if they tried to block them form building x86 chips anyways.
0 0 [Posted by: sollord  | Date: 02/17/11 03:31:24 AM]
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15. 
Quote:
"AMD lacks technology for smartphones, tablets and some other promising form-factors"

What a load of rubbish, what do you think Brazos/Llano is made for apart from netbooks, its the perfect fit for tablets
0 1 [Posted by: alpha0ne  | Date: 02/16/11 01:33:03 AM]
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16. 
Sure I am hear also that Apple buy Intel.What about crack of CPU ? Really news are for SF movie.
0 1 [Posted by: Blackcode  | Date: 02/16/11 04:11:36 AM]
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17. 
It won't happen X86 license is non transferable and what other reason is there to buy AMD? What there graphics cards for Dell I don't think so. No one is going to buy AMD for the same reason no one is going to buy VIA which actually would be more likely to be bought than AMD. I could see AMD spinning off it's graphic division to be sold to Nvidia or Intel perhaps, but that's it.
0 0 [Posted by: knowom  | Date: 02/16/11 10:06:03 AM]
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Outside of IBM...
0 0 [Posted by: sollord  | Date: 02/17/11 03:32:24 AM]
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18. 
Thinking about it really the worrisome part about ARM is if they wanted to in the future they could pull the same moves Intel has with it's licensing if they decided to develop there own SoC's.
0 0 [Posted by: knowom  | Date: 02/16/11 10:07:37 AM]
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