AMD may be in play, but Dell purchase unlikely
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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Talkback
What benefit would AMD give Dell?
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.
RE: AMD may be in play, but Dell purchase unlikely
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.
You're choices for stories make you sound like a cheap Tabloid rag
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!
RE: AMD may be in play, but Dell purchase unlikely
Agreed! LOL -- anything for a headline...
Would regulators allow a Nvdia acquisition?
RE: AMD may be in play, but Dell purchase unlikely
RE: AMD may be in play, but Dell purchase unlikely