Our well informed industry sources have told us that AMD is about to sell 20 percent of its stake to a private equity outfit called Silver Lake.
Fudzilla got this from multiple, independent industry sources that want to remain anonymous. Silver Lake was the outfit which was behind Michael Dell's take over of his company and has piles of cash.
The company advertises itself as a global leader in technology investing and that have invested money in brands like Alibaba, Avago, GoDaddy,Motorola Solutions, Opera Solutions and many others has prepared to bite the significant part of AMD.
This could be AMD's big break as it will get the money that it desperately needs. AMD has been sinking under financial problems as its CPU roadmap is not that great and it is hard for AMD to compete with Nvidia in the mainstream and entry level graphics market.
Why would they want to own 20% of a turd?
Why would they want to own 20% of a turd?
Why do people read SA? And even worse, relay "news" from there?
This is from fudzilla. I'm just saying there seem to be a lot of people saying this will happen and now another one popped up. Didn't you post the CEO stuff about how she wasn't selling and there was a plan in place or something? I mean this lines up with that.
Primarily GPU related, but affects APU/CPU too.AMD Reorganizes Graphics Division - Radeon Whole Once More, Led By Raja Koduri
[...]
It was a bit over nine years ago when AMD announced that they would acquire ATI, the Canadian graphics firm, developer of Radeon GPUs, and constant competitor to NVIDIA. In acquiring ATI, AMD set forth on a massive plan that forever changed how AMD went about building CPUs. The CPU alone would soon no longer be enough; CPUs would need to become something closer to SoCs, integrating I/O, graphics, and more. In AMD’s eyes the future would be fusion, and it would be ATI who would the missing pieces that would in time make AMD’s future whole.
By and large AMD achieved their technical goals with the ATI acquisition.
[...]
None of this could have happened for AMD without the ATI acquisition, and while AMD paid a high price at the time for the technology, in the long run it’s very likely that the fusion of AMD and ATI is what has kept the modern AMD an important player in the current marketplace.
[...]
The end result is that after 9 years there is a reluctant admittance within AMD that such a deep fusion of the businesses has not worked out like AMD expected. GPUs are still essential to AMD’s technology plans and the technology fusion is critical to how AMD operates, but how those products are developed and marketed within AMD needs to change. Consequently AMD has decided to take a step back and to reevaluate how they want to organize their graphics business. And the outcome of that evaluation is that the graphics business will once again become whole, with AMD in a sense turning back the clock and keeping graphics as its own unit.
Leading this new group is AMD veteran Raja Koduri.
Charlie at Semi Accurate has been hinting at this for weeks. And now apparently fudzilla caught wind of it. I know a lot of you will question the sources, but something HAS been going on at AMD for awhile and we learned through the CEO it wasn't going to be a buyout or sale..So this lines up..
http://www.fudzilla.com/news/processors/38694-private-equity-to-get-20-percent-of-amd
Not sure how old you are? At one point in time Apple was considered a turd. Sometimes great things grow out of turds....Literally!
Not sure how old you are? At one point in time Apple was considered a turd. Sometimes great things grow out of turds....Literally!
Yeah, I guess the same argument could be said for why any crappy business could one day do well, but how many "Apples" have you seen in your lifetime?
With 14nm now available to them -- they can make some pretty compelling products.
With a smaller, focused company...... They have the potential to do some great things.
The bottom line -- excluding the Bulldozer fiasco, AMD has always had a great deal of engineering talent.
AMD also appears to have a sizeable performance advantage right now for DirectX12 in regards to their video card lineup. Windows 10 is already on 25 million devices -- so perhaps Private Equity seems a financial play.
"DX12 will save AMD" or "AMD will win in PC because console APUs" is wishful thinking at its finest.
What does "20 percent of its stake" mean exactly?
They are buying 20% of the shares on the market, or AMD is selling them private shares, or something else?