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.