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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

AMD may be in play, but Dell purchase unlikely

By | February 15, 2011, 9:50am PST

Summary: The chances of Dell acquiring AMD are likely to be slim, but the management free chipmaker does make a good takeover target.

Shares of AMD got a little pop on rumors that Dell may acquire the company. The chances of Dell acquiring AMD are likely to be slim, but the management free chipmaker does make a good takeover target.

Let’s face it. AMD doesn’t have anyone at the helm and as Barrons noted that’s a situation just begs for rumors. AMD booted CEO Dirk Meyer and now operating chief Robert Rivet has left the building. In addition, Marty Seyer, senior vice president of corporate strategy, also left. These departures aren’t all that surprising, but when you factor in a CEO search AMD looks vulnerable.

Simply put, an acquirer could just buy AMD and insert its own management.

Why wouldn’t Dell want AMD? Dell would alienate long-time partner Intel. Meanwhile, it’s unclear what edge AMD would give Dell. Dell needs software and services not a chip war with supplier Intel.

However, AMD would be a nice fit for those ARM-based mobile chipmakers that are interested in becoming a broader computing platform. Qualcomm and Nvidia could be stretch buyers for AMD.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: AMD may be in play, but Dell purchase unlikely
Lilputing 16th Feb 2011
@Alan Smithie Definitely agree about the anti-trust line, there's no way it would be allowed unless the GPU line was removed and that would take away the majority of the reason of purchasing the company. HP is a very good idea, they are buying everything else why not get into chip making too happy Also, maybe Samsung?
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What benefit would AMD give Dell?
Michael Alan Goff 15th Feb 2011
AMD CPU and GPU sound like a good benefit of the partnership.

If anything, the question should be what Dell brings to the table. Even Apple would be a better fit, they have shown themselves to be a rather good company. I don't see Dell bringing anything more than cash to the table, which can be brought by anyone.

AMD may be down right now, but it shouldn't be counted out.
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Amd is down in terms of stock price - yes..but really not in terms of product lineup...
Amd now in Accer tablets...
Fusion kicks sandy bridge to the curve etc...

Any computer manufacturer would benefit from having its own CPU/GPU/ and now APU...
Think Apple for a second... they decided to build their own chips for a reason: Lowered costs = increased margins.
The first story in this AMD saga was: "AMD up for sale? Dell interested?" -- Reads like a Faux News headline, where the Question Marks are there to buy some semblance of truth-finding, when it's actually just masking editorializing.

Then your next story was: "AMD may be in play, but Dell purchase unlikely" -- Didn't you just answer the 'question' you posed in your first article?? Again, another Faux News mainstay.

Oh, and the kicker -- The stories were published just over an hour apart. You sound like you're discussing market trends through headlines like teenagers exchange Facebook statuses!
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@marlinspike

Agreed! LOL -- anything for a headline...
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Would regulators allow a Nvdia acquisition?
matthew_maurice 15th Feb 2011
Someone would surely require that ATI be spun back off from AMD, but would anyone be interested in it? It couldn't make it as a standalone before, would that be any different now?
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Nvidia would never pass anti-trust, HP might be a dark horse though.
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@Alan Smithie Definitely agree about the anti-trust line, there's no way it would be allowed unless the GPU line was removed and that would take away the majority of the reason of purchasing the company. HP is a very good idea, they are buying everything else why not get into chip making too happy Also, maybe Samsung?

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