Advanced Micro Devices (AMD) has reportedly hired investment bankers from J.P. Morgan Chase (JPM) to explore strategic options, including a potential sale of the company. AMD’s stock has plunged more than 60% so far this year amid pressure caused by an industry shift away from PCs in favor of smart phones and tablets. Could AMD be sold or parted out to the highest bidders? Anything could happen, but this news isn’t good for enthusiasts and gamers that are AMD fans. AMD has long been a favorite of Do-It-Yourself (DIY) system builders as they offer an alternative to Intel based options. We asked AMD for comment and have not received one. If we do get an official comment we will post it up!
Update 4pm CT: We have received an official statement from AMD on this matter: “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. AMD is not actively pursuing a sale of the company or significant assets at this time.” – AMD PR
Advanced Micro Devices has hired JPMorgan Chase & Co to explore options, which could include a potential sale, as the chipmaker struggles to find a role in an industry increasingly focused on mobile and away from traditional PCs, according to three sources familiar with the situation. The company’s stock surged 18 percent on the news before ending up 5 percent at $2.09 on the New York Stock Exchange. Sources told Reuters on Tuesday that an outright sale of the company is not a priority, and other options for AMD could include a sale of its portfolio of patents. One of Silicon Valley’s oldest chipmakers, AMD is laying off engineers and some analysts are concerned it may not find new markets for its chips in time to reverse a declining cash reserve.