Breaking: AMD Seeking Rescue?
Advanced Micro Devices (AMD) has hired JPMorgan Chase & Co to explore options, which could include a sale, as the chipmaker struggles to find a role in an industry drifting toward mobile devices and away from traditional PCs, according to three sources familiar with the situation.
The sources stipulated, however, that an outright sale remains a last resort, but other, more likely options include the sale of AMD’s patent portfolio.
“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,” spokesman Drew Prairie said in an email to Reuters. When asked why AMD hired JPMorgan, Prairie declined to confirm, citing that the company does not comment on its relationship with investment banks, but introducing doubt into the depths of AMD’s desperation.
But such measures would not be surprising – AMD is a long-time competitor of the much larger Intel, and while it has kept up in the past, AMD lacks the deep pockets Intel relies upon to keep up with emerging markets and technologies. In the past year AMD’s shares have fallen 60 percent, lowering its market value to $1.4 billion relative to its long-term debt and capital lease obligations of $2 billion.
It is yet to be seen whether the information of these three sources can be confirmed.
Full story at Reuters