Who Wants to Buy AMD? - TGDaily Discussion
Forum CPU & Components : CPUs - Who Wants to Buy AMD? - TGDaily Discussion
Here's the article from TGDaily...
http://www.tgdaily.com/content/view/35289/118/
| Quote : Who wants to buy AMD?
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I personally think the Samsung acquisition would be VERY interesting. That would certainly heat up the x86 market by ten-fold. The article pretty much covers most cases, so I'll simply create the thread than reply once other responses have been posted.
I hope Nvidia doesn't buy them, it'll kill off ATI...and then monopoly.
If google buys them, the ever popular name will become even more popular and nearly everybody will know them and buy them. The average Joe will most likely buy a Google pc compared to Intel. I mean even my friends don't know what Intel is
Personally I think Google should buy General Motors too. Rename it and call it Google Motors. Everyone will recognize them
*Lesbian Lover Club* - founder Assman
Reply to Evilonigiri
It's just a matter of time now. Mostly likely companies will wait for either amd to fold or just before they would start to "break even". Get the lowest price (less then a billion easy).
| Evilonigiri wrote : I hope Nvidia doesn't buy them, it'll kill off ATI...and then monopoly.
|
So true in a way.....

Reply to Shadow703793
Google would have no business purchasing AMD. It would be Sony buying Gatorade or something. It's two very different markets. Google has relatively no experience in producing CPUs, let alone GPUs. It would be tackling way to many things at once. That's just my two cents though.
I would really like to see either IBM or Samsung purchase AMD. That would be very interesting. Preferably Samsung, because they are Intel's #2 competitor, and could help AMD in the Research and Development areas substantially. Although I dislike the fact of AMD being boughten out, it comes to me as no surprise to hear this suggestion. The company is performing very poorly at the moment on the CPU segment and the GPU segment, well after a year, is finally starting to do some good now.
What I find the most baffling out of all of this, is that AMD can be bought (including ATI and its division) for less than what it paid for for ATI and its acquisition. That really concerns me a lot. AMD bought ATI for $5 billion and now it can be had for less than $4.8 billion. This goes to show that AMD is REALLY hurting. And what makes me just go into absolute shock is how they just gave Hector Ruiz a raise!
I think a purchase of AMD for Samsung would be downright the best thing the x86 market has or will ever see. Competition will be fierce, it will allow Samsung to increase in profits, which in turn will drive more products, not only this, but it would allow for better competition in the GPU industry as well. Driving performance even higher due to Samsung being a very large corporation, they can R&D more, and they can produce more and more at a time.
I feel that if Samsung purchases AMD, things will be much brighter in the x86 market and in the GPU market as well. Samsung could really expand on where ATI and AMD are planning to go. For example, ATI uses display chips in TVs and HDTVs, Samsung is a leader in producing TV and HDTVs, couple ATI in there with it's own products and BAM! You've got much better performance right from the get go. No longer would Samsung have to spend more to get an ATI display chip in its TVs, it could do it for cheaper, which would lower cost just on that front alone.
Samsung produces memory, AMD uses an IMC. Imagine the possibilities on that one for a moment.
Samsung also makes hard drives, not many, but they do make them. If you can discover ways to increase performance between the HDD, CPU, and GPU, as well as Memory, you'll get much better performance.
Samsung also does telecommunications, an acquisition of ATI would allow display chips in cell phones that are better and cheaper, couple that with an AMD chip and you got one good product.
Just looking at possibilities of what Samsung could potentially do to AMD and ATI is really interesting. If anything I think it would make the x86 market really heat up, and I think it would make memory heat up the most. Granted Samsung could produce it's own motherboards, CPUs, and GPUs, along with it's own memory. That in itself is a great platform in the making.
Just think about it...
Reply to justinmcg67
nVidia can't buy AMD because that would give them too much GPU share. I think AMDs current stock troubles are over-exaggeration of problems.
| BaronMatrix wrote : nVidia can't buy AMD because that would give them too much GPU share. I think AMDs current stock troubles are over-exaggeration of problems. |
Unless Larrabee does well in Q4 08.
Then it would be nVidia vs Intel on everything.
The bit about selling off ATi wouldn't be a horrible idea either.
Reply to cnumartyr
Damn Baron, I'm trying to restrain myself from getting into a flame war with you in each thread I go to, But how can you say that amd's stock troubles are based on people over-exaggerating AMD's situation. They ARE in trouble...In big trouble..
I'm just gonna leave it at that...Since you literally do not want to accept or listen to anyone else. You just live in your fantasy world.
Back on subject though, It would be a bad move for AMD to sell ATI. AMD won't really go under, and the acquirement of ATI was a good solution for the companies business plan. They are branching out to many different product segments...Unluckily, they just bought ATI and the worst possible time.
Well the purchase was bad timing because they were in transition to a new socket, i see that being bad because there were stilla lot of fresh Socket 939 owners and DDR2 wasn't that cheap as it is today, which means more people won't move over to Socket AM2 and DDR2. Second, Intel released the Core 2 Duo series at almost the same time. Third, instead of having money to help transition them through the phase of Socket 939 and Socket AM2, along with new products, they than decide to purchase ATI and take a $5 billion hit. Not only this, but ATI did not release a new product for quite some time. In the end it really shows that it's taking a toll on the company, especially if sites are saying that you could get bought out. Imagine what other companies would do if they heard this sore of thing...
Reply to justinmcg67
So what happens to x86 license? why didn't anyone mention that?
Just curious how much debt a company would be buying for $4.8B. Does that even matter?
| dariushro wrote : So what happens to x86 license? why didn't anyone mention that? |
Well, there wouldn't be much of a story then, would there? I've mentioned it many times on here. I'd be interested to know what people smarter than me about such things think. It'd sure be interesting to know the details of existing deals between IBM, Samsung and Intel. It seems that it might be a stumbling block, but there might be deals already in place between Intel and others that might "grease the skids". I've always been of the opinion that it'd be a deal killer, in that Intel could drag it's feet on negotiating long enough to put a potential buyer another generation behind, and put a(nother) crimp in the AMD cash-flow crunch. Court hold-ups work both ways.
Whatever happens I just hope Intel recieves some good competition.. I'd hate to go back to consoles...
The Chinese government should buy them; they have trillions of dollars sitting around doing nothing, and that would give them a high-end CPU manufacturer and high-end GPU manufacturer which would help them break their reliance on American chips. OK, turning AMD into a Chinese company would take years, but they do tend to think long-term.
Hi - AMD's current debt is $5.3 billion so the true acquisition price wouldn't be $4.8 billion, it would be $10.1 once the new buyer assumes AMD's debt. Its' return on assets is -6.76% and its' return on equity is -47.78%. These are all horrible numbers! I'll bet that there will be no offers for AMD until their stock is around $3-4 per share (perhaps sometime in the 2nd quarter of '08)...stevenpchurch
I think you'd have to be rather dillusional to think that. I called AMD @ 8.50 by the end of the week and it happened. I also predicted AMD in the $7 range by the end of this month; we'll have to wait and see, but I feel it will close at last once or twice below $8 dollars.
AMD is in HUGE financial trouble, especially in light of what other's have posted. Although AMD's debt exceeds its market capital, you have to keep in mind AMD's assests. They might not have tons of fabs like Intel, but they do have some, as well as intellectual property and other stuff as well that common folk aren't aware of.
I don't foresee a buyout of AMD, but it wouldn't surprise me if it is a discussion in some boardrooms.
Message edited by Jake_Barnes on 12-18-2007 at 12:18:09 AM
RabidFanboysSpreadingFalse.Info
Reply to TechnologyCoordinator
Ahh if this was the 80's some company would come in and buy up AMD just to part them out and make billions.... Thats what they should be worried about at that price, I think the FTC might step in but then again, they might not. ATI would be worth the cost of buying AMD alone and then you would have all those juicy fabs to sell. Of course im pretty sure AMD has enough debt to make something like this harder then it sounds.
I don't think anyone will buy AMD. The x86 licensing agreement with Intel has a clause that voids the license in the event of a change of AMD ownership. So whoever buys AMD would end up not being able to sell x86 chips. Who'd do that?
| continuation wrote : I don't think anyone will buy AMD. The x86 licensing agreement with Intel has a clause that voids the license in the event of a change of AMD ownership. So whoever buys AMD would end up not being able to sell x86 chips. Who'd do that? |
In the UK we had a similar problem when NTL wanted to buy Telewest, as I recall what happened was that Telewest 'bought' NTL and then they renamed the new company NTL, with the old NTL boss at the top. I don't know the exact mechanics of it, so it might not be possible between AMD and Samsung, or whoever, but it would be amusing.
| continuation wrote : I don't think anyone will buy AMD. The x86 licensing agreement with Intel has a clause that voids the license in the event of a change of AMD ownership. So whoever buys AMD would end up not being able to sell x86 chips. Who'd do that? |
I'd expect the the x86 licence would be a non-negotiable part of any potential buyout. The buyer would simply end up paying Intel's fees for continuation of the x86 licence as part of the deal. Given that x86 is a couple decades old, I sincerely doubt this would even remotely become a sticking point.
Regarding the United States FTC (Federal Trade Comission): AMD is a Canadian company, no???
The FTC could certainly offer up it's opinions, but at the end of the day I'm pretty sure the reply would be something along the lines of "Take a Flying F*** at a Rolling Donut, Ehh? The only 'ooot' here is going to be on the end of the Booot which is rapidly approaching your collective backsides!! Buncha Hosers"
Message edited by Scotteq on 12-15-2007 at 05:35:06 PM
Reply to Scotteq
AMD is having a sale:
Buy one CPU manufacturer, and get a graphics company, FREE!
RabidFanboysSpreadingFalse.Info
Reply to TechnologyCoordinator
@ Scotteq: AMD is incorporated in Delaware, with it's HQS in Sunnyvale, Calif. (I believe this is right).
The Edge... There is no honest way to explain it because the only people who really know where it is are the ones who have gone over. - HST
Reply to Jake_Barnes
Really? Then the FTC does have jurisdiction.
Strange... I could have sworn their world HQ was in Canada... Oh well.. back to the crack pipe, I guess...
Reply to Scotteq
| Jake_Barnes wrote : @ Scotteq: AMD is incorporated in Delaware, with it's HQS in Sunnyvale, Calif. (I believe this is right). |
I don't see anything on the Delaware connection. But the headquarters is in Sunnyvale, CA. So the FTC and a whole bunch of other federal offices would get involved with any proposal of sale to an outside of country company. Due to some of the restrictions against computer knowledge going outside the country, a sale to Samsung might be prohibited.
One point that the author of Tom's didn't explore is that AMD would not necessarily have to be bought out for the $4.8 billion, or $10+ billion including debt. All that would be necessary is to buy 51% of the stock to gain control of the company, about $2.4+ billion. Then the controlling owner could fire Ruiz, the board, and do most anything else he wanted. If the new controlling owner had the money in hand, he could also pay off the debt so as to have the company free and clear of outside influence.
Over 50. Seen it, done it, can't remember it, but I miss it.
Reply to Sailer
If it trades in the US stock market and is required to make SEC reports and follow SEC guidelines, wouldn't they be subject to the FTC and SEC?
RabidFanboysSpreadingFalse.Info
Reply to TechnologyCoordinator
| Sailer wrote : ......All that would be necessary is to buy 51% of the stock to gain control of the company, about $2.4+ billion. Then the controlling owner could fire Ruiz, the board, and do most anything else he wanted... |
....at which time Turpit's fingers commence to bleeding from editing all the posts in the boards here....
Reply to Scotteq
| TechnologyCoordinator wrote : If it trades in the US stock market and is required to make SEC reports and follow SEC guidelines, wouldn't they be subject to the FTC and SEC? |
Yes they would, and the SEC in particular wields immense power. But lets say that I was rich enough to make such an offer (I'm not) to buy controlling interest. Since the last bid was about $8.50, I might make an offer to buy at $10 and then obtain a mass of shares, perhaps more than the 51% I needed. The FTC would not do all that much beyond making sure I had the money and was not causing a monopoly of something, thereby violating the Sherman Antitrust Act. The SEC would make sure that I was not from another country or transferring control to somone of another country or doing something else less than honest. So while subject to the rules, the rules do not prevent such a sale from happening.
Last, once such a sale was approved, the company could in theory be taken off the stock market, turning it from a publically owned company to a privately owned one. That would require either total ownership or at least approval of the remaining stockholders, but it could be done. Whether or not that would be a good idea is a different subject and one I can't answer.
Over 50. Seen it, done it, can't remember it, but I miss it.
Reply to Sailer
I think a UK firm should make a bid, it'd be great to have a UK owned CPU manufaturer. Have union jacks on all the chips!
| TechnologyCoordinator wrote : AMD is having a sale:
|
Sorry but I couldn't help but laugh when I read that one!
Reply to justinmcg67
| quantumsheep wrote : I think a UK firm should make a bid, it'd be great to have a UK owned CPU manufaturer. Have union jacks on all the chips! |
I don't know if that could happen. Its similar to the idea of Samsung buying AMD. The USA gets very particuar in allowing computer technology from leaving the country.
Besides, its hard enough to understand brochures and instructions that are printed in American. How many people could understand them if they were printed in the King's English?
Over 50. Seen it, done it, can't remember it, but I miss it.
Reply to Sailer
| Scotteq wrote : Strange... I could have sworn their world HQ was in Canada... Oh well.. back to the crack pipe, I guess... |
ATI's HQ was in Canada. It was closed when AMD consolidated it's HQs, and is under the same regulations (FTC) as AMD.
AMD did have to get permission from the Canadian government in order to purchase ATI in the firstplace, however.
I don't really see any American companies making the purchase. Perhaps sell it back to the Canadians?
Reply to justinmcg67
| TechnologyCoordinator wrote : http://www.crashcribbage.com/images/iraqmoi.bmp
|
TC your getting better at this lol! I almost forgot about that guy! when they eventually caught up with him, it was like 'ah your the guy who made an arse of himself in front of millions, thats punishment enough! ...well, have a nice day now'
I would say AMD's biggest worry is probably not that of going out of buisness at this stage, but being bought out. The idea of nvidia doing it seems laughable really. Theyve been going great guns the last 2 years, and wouldnt want to sh#t in their own bed buying control of AMD and picking up the interest payments on that debt. Although being the last independant mass market add-in graphics card maker might make them consider buying up a buisness in another related sector though.
Hugo Chavez!
Need I say more? Imagine that! He has the money to fix AMD.
I think venture capitalist will still be the answer. Keep an eye on this - if someone makes a move on AMD it'll be just when the start clawing back.
Intel should buy in just to keep AMD afloat and the "competition" alive, just like M$ did with Apple.
Reply to nhobo
| nhobo wrote : Intel should buy in just to keep AMD afloat and the "competition" alive, just like M$ did with Apple. |
With all the monopoly troubles Intel now has in the courts, if they even whispered of such a thing, it would be easier for them to just go to prison, open up the cell doors and lock themselves in. And that's besides opening their financial coffers to pay off the fines and penalties.
M$ could do it with Apple because Apple makes computers and M$ makes software, so there wasn't a bug monopoly problem occurring.
Over 50. Seen it, done it, can't remember it, but I miss it.
Reply to Sailer
| Sailer wrote : I don't know if that could happen. Its similar to the idea of Samsung buying AMD. The USA gets very particuar in allowing computer technology from leaving the country.
|
Queen's english ... we have a queen at the moment
| Sailer wrote : M$ could do it with Apple because Apple makes computers and M$ makes software, so there wasn't a bug monopoly problem occurring. |
Apple also makes software - in particular operating systems that compete directly with M$. Intel "investing" in AMD would mirror this.
Reply to nhobo
IBM's been "investing" in AMD for a long time by doing AMD's process research for them. The German government has been "investing" in AMD for a long time as well by giving AMD free fabs. Intel has gained a tiny benefit from the x86 license (it's a cross-license, after all), but obvioulsy it's pretty lopsided. Lots of parties have interest in AMD staying alive. But without the x86 license transferring (and Intel CAN stick it to whoever tries to buy the struggling AMD...perfectly legal), what company would be interested?
Reply to wolverinero79
| TechnologyCoordinator wrote : I think you'd have to be rather dillusional to think that. I called AMD @ 8.50 by the end of the week and it happened. I also predicted AMD in the $7 range by the end of this month; we'll have to wait and see, but I feel it will close at last once or twice below $8 dollars.
|
O great genie of de lamp do you see an Intell cpu in my near future.....................
Gigabyte M61P-S3
4 GB OCZ Fatal1ty DDR2 800
Asus 4850 512mb
Reply to caamsa
| caamsa wrote : O great genie of de lamp do you see an Intell cpu in my near future..................... |
Only if the B3 fails.
Reply to cnumartyr
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