Will AMD sell out?

From many recent stories I have read it seems as if it's just a matter of time before AMD either sells out, or is forcefully bought out. They are in terrible financial state, and the company's stock value is well below it's actually value. Making it a prime target for a possible takeover.

At this time, both IBM and Nvidia have expressed some interest in the possibility of purchasing the troubled chip maker. AMD currently has a "market" price tag of $3.88 billion. Though either company could raise the money needed this would be a very risky move for Nvidia. While the purchase would be of AMD would be pocket money for IBM.

Intel insiders say that IBM's purchasing AMD and getting back into the hardware market is move that scares Intel's leadership beyond belief. There is a saying inside Intel: "IBM is a vampire that never dies. IBM has been around the block before the block even existed". The know how IBM could provide AMD could allow for very quick gains against Intel's current technological lead.

Is it just a matter of time before AMD is gobbled up by some willing party?
Is there any possible good that could come out of this for the consumer?

I wonder if Intel will be allowed to buy AMD due to monopoly laws and such

I can't see any good at all. Without AMD/ATI there is practically no competition what so ever. Hell, their won't be any. nvidia and intel will just have complete control, without a competitor the prices likely to rise and advancements will probably slow down as well because there would just be no reason to be on their toes anymore and keep the improvements coming.

I really hope AMD can pull something off.

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Originally Posted by Detale

I wonder if Intel will be allowed to buy AMD due to monopoly laws and such

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Intel has their own financial troubles to worry about.

They had layoffs of some 7K employees in 2007 alone and they just demolished a building (6-8 stories?) in downtown here that Intel abandoned work on about 2 years ago.

They started work on the building right smack dab in the middle of town and then just stopped. They structure of i-beams and a bit of concrete sat like that for about two years before it was sold and leveled with charges last year.

Somehow, the two major competitors in the processor market aren't doing well. :unsure:

I'm not terribly worried about the financial state of Intel. They posted a profit of $2.27 billion in Q4 2007.
I'm also very sure they would be more than glad to buy AMD to scrap it and eliminate their only real competition in the market.

Luckly, yes there is laws to prevent such monopolization.

Intel can't buy AMD and who else would want to?

The biggest hurdle to a buy out is the fact that AMD licenses quite a bit of technology from Intel and these licenses are NOT transferable in the case of a third party sale.

AMD was semi-successful in attracting investors last fall and I'm sure they're actively courting more but Intel looks to be in the catbird seat for quite a while now.

The question is who would want to buy AMD. Both Intel and Nvidia would more then likely never clear the legal hurtles to do it. So you'd be looking at IBM as a more obvious choice unless private equity cares to dabble. AMD is in a hole up a creek and in need of new management after all the debacles they've had lately. Does IBM a nice somewhat stable company really want to take a risk like that. I think there are some potential synergies that might bode well between the 2 as they're in collaborations on some things but you never know till you get deep down in it.

The reason AMD is such a good target right now is because they could be bought at such a bargain basement price tag. The company it's self is worth about $5 billion, but current market price for the sum off all it's stock is $3.88 billion.

It's very correct that AMD has no transferable technology licenses which is vital to the companies business which prevent most indites from buying them . But, both Nvidia and IBM already own the rights to these technologies.

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Originally Posted by Detale

I wonder if Intel will be allowed to buy AMD due to monopoly laws and such

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Hell to the no.

Not every company that's cheap and should be bought will be. I can name you several companies that are cheap it's about money how much is it gonna cost and how much are they gonna save/make in the long run. Look at Microsoft they offered a 62% premium for Yahoo which is more then generous but yet you have the Yahoo board come out saying that's not enough. Yahoo is a broken company that is poorly managed. They're so bad they could out source to Google and make more then they are now. Just like AMD, AMD is broken and broken companies don't typically get a lot of bidders for them. Another thing worth is opinion based it's your opinion that AMD is worth a certain amount with out looking at the books. IBM or another bidder may not see it the way you do. Frankly at the rate AMD is burning cash I wouldn't be surprised if they went bankrupt that's how bad they are.

I hope AMD dont go cos then half my pc is fucked ive got ATI and AMD through out my pc!

I actually could see how IBM would be interested in AMD since they lost the Mac market to Intel and don't have any processors to compete in that section of the market at the moment I think.

As for if they would go ahead an do it I have no idea.