AMD Rumoured to Be Up for Sale Again: Dell May Be the Buyer

Dell May Acquire Chip Designer AMD - Rumours

by Anton Shilov
02/14/2011 | 07:18 PM

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.