Chief executive officer of Advanced Micro Devices has ordered a research to review possibilities of splitting the company in two or spinning off a multimedia chip business unit, a media report claims. The company is mulling different options, as it desperately wants to become competitive against Intel. AMD itself denies that it is considering such a drastic move.
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While fully-integrated AMD seems like a very potent corporation, the truth is that the finest moments of both AMD and ATI happened before the two companies became one. Since the acquisition of ATI in late 2006, AMD has been losing share in both microprocessor and graphics processor markets. In the recent years, sales of AMD’s CPUs took a dive and shipments of graphics processors collapsed in the recent quarters. In fact, AMD’s revenue for the first quarter of 2015 dropped to $1.03 billion, the worst quarter in more than a decade. Essentially, AMD and ATI now earn less than AMD alone in mid-2000s.
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Update June 29th
Microsoft might be interested in buying AMD, according to source
Read full article at Source (kitguru.net)The details about negotiations are unclear, just like Microsoft’s exact proposal to AMD. However, since Microsoft has $95.3 billion in cash, whereas AMD’s market capitalization right now is $1.81 billion, the software giant may buy AMD relatively easily. In fact, current value of AMD is three times lower than the company paid for ATI Technologies in 2006.