Rumor mill abuzz with AMD-IBM merger, partnership talk

 

AMD and IBM are already engaged in a research and development partnership, and MarketWatch quotes JMP Securities analyst Krishna Shankar as saying the firms could strengthen the partnership and turn it into a more formal affair. The partnership could play into the "asset-light" business model that AMD CEO Hector Ruiz mentioned last week, as well. According to Shankar, a deeper partnership between AMD and IBM could allow the former to outsource production to IBM's New York fab. The two companies could also enter a cross-licensing deal to deflect possible lawsuits from Intel that would seek to limit AMD's processor outsourcing capability.

 

In the wake of AMD's fourth-quarter financial results announcement, in which the company announced near operational break-even and a $1.77 billion net loss, a rumor has emerged that IBM may be planning a takeover bid for the ailing chipmaker. The rumor has gained enough momentum to warrant a mention on Reuters, which says AMD's shares went up 8% yesterday as a result of the story.

The fact that most of these reporters leave out is that AMD bought ATI last year for 1.6 billion. They "broke-even" because purchases usually don't count as losses. Just my two cents

The fact that most of these reporters leave out is that AMD bought ATI last year for 1.6 billion. They "broke-even" because purchases usually don't count as losses. Just my two cents

Yeah I hear with what you're saying. I didn't know that's how much they paid.

 

I think that there are way too many rumors about who is going to buy AMD to take any seriously. Panasonic, nVidia, IBM, yadda yadda. I'll believe it when I see it.

 

The rumor has gained enough momentum to warrant a mention on Reuters, which says AMD's shares went up 8% yesterday as a result of the story.

HA hahahha, how come the fact that IBM's stock went down because people heard about the proposed buyout wasn't mentioned? Good stuff, funny funny.