Menu
AMD denies reports company is for sale

AMD denies reports company is for sale

Reuters report hints that AMD hired JPMorgan Chase to explore 'options'

Advanced Micro Devices (AMD) is denying reports that executives have taken steps that could lead to the company's sale.

Speculation began to spread Tuesday afternoon after Reuters reported that AMD has hired JPMorgan Chase & Co to explore business options, including a potential sale. According to Reuters, which cited unnamed sources, AMD is not focused on an outright sale of the company but could be looking to offload its patent portfolio.

One of the world's largest chip makers, AMD has been struggling in recent years against competitors like Intel, as well as a PC industry that has been pummeled by the growth in sales of tablets and smartphones.

Just last month, the chip maker announced it was laying off 15% of its workforce.

However, late this afternoon, AMD said it's not looking to sell. "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," the company said in an email to Computerworld. "AMD is not actively pursuing a sale of the company or significant assets at this time."

Zeus Kerravala, an analyst with ZK Research, said he wouldn't be surprised if AMD was looking into different sale options.

"I think selling off parts of the business would make sense," he said. "Raise some cash and then get laser focused in the higher growth areas.... Sell off some of the dead parts of the business and focus on gaming, mobile, etc. -- the high growth areas. Ditch PCs."

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, on Google+ or subscribe to Sharon's RSS feed. Her email address is sgaudin@computerworld.com.

See more by Sharon Gaudin on Computerworld.com.

Read more about it industry in Computerworld's IT Industry Topic Center.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags JPMorgan ChaseIT industryReutersAdvanced Micro DevicesAMDComponentsprocessorsintel

Slideshows

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

Twenty-one industry leaders came together with ARN staff for an Emerging Leaders Think Tank, held at The Bottle Shop in Sydney​. The aim of the planning session was to develop a compelling program for high potential leaders in the Australian ICT industry.​ Over two hours of strong debate a core line of thought evolved which will form the basis of the Emerging Leaders Forum to be held on May 17 in Sydney. Photos by MARIA STEFINA.

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments