Rumor: AMD is up for sale, Dell may be interested

By on February 15, 2011, 6:00 AM
As far as the stock market is concerned, Advanced Micro Devices may be up for sale. AMD's shares were significantly up yesterday, apparently on rumors that Dell is interested in buying the American multinational semiconductor company. Barron's reported on the rumor first:
I would say the recent departures of senior executives COO Robert Rivet last week, CEO Dirk Meyer back in January is still unexplained and can lead to all kinds of speculation. There's not a lot of color on the rumor at this point. Is Dell considering making a more integrated kind of product line? Talk about a change in strategy.

CFO Thomas Seifert is acting as interim CEO but he has said that he doesn't want the promotion to be permanent. Bloomberg followed up on the rumor with quotes from an industry analyst:

"There is no management team there," said Patrick Wang, an analyst at Wedbush Securities in New York. There is some "chatter" that the company is up for sale, he said. "It's a far- fetched possibility."

If AMD ends up being bought out, the purchase by Dell, or any other company for that matter, would be among the biggest the technology industry has seen. It would be of course bigger than when AMD bought ATI in 2006.





User Comments: 49

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R3DP3NGUIN R3DP3NGUIN said:

If Dell buys AMD I am definitely switching to Intel

bioflex said:

things are not looking good, the last thing we would want is for AMD to be sold....come on.....buldozer is not even out yet.

Timonius Timonius said:

R3DP3NGUIN said:

If Dell buys AMD I am definitely switching to Intel

If Dell buys AMD I am definitely staying with Intel as I absolutely refuse to buy Dell products. I'll probably never get to try an AMD based PC at this rate

princeton princeton said:

Honestly intel could have bought them already. The only thing stopping them is antitrust issues.

Guest said:

Now why would DELL buy AMD when its been refusing to use their products for years! I mean seriously AMD tried to sue them for not fair competition with intel before

madboyv1, TechSpot Paladin, said:

Assuming manufacturing/design processes and lower level management stayed the same, AMD =/= "Dell product", if such a acquisition were to happen (Guest@7:23AM makes a good point). It takes a lot more QC to actually manufacture hardware than it does to make OEM computer systems, so a processor/graphics card branch would be spared the "Dell Quality" moniker, at least temporarily.

Also, not all Dell products are bad (GASP). Their branded IPS displays are some of the best considering their pricepoints and connectivity.

Guest said:

First off it's just a rumor,a nd secondly if a big PC company where to buy AMD it should be Apple or HP. They would benefit more from such a purchase. also, those companys have the buying power that Dell does not.

Guest said:

I was considering purchasing an Alienware Laptop, Financing it and staying with it and using it as my Design Computer (Website/Video Game design)

Then Dell bought out Alienware, i didn think it would affect it much but...Oh man did it affect it so much.

Prices went up, Quality went down. I went to an alienware store here in Miami (where the old HQ for ALienware used to be)

and everything was...plastic..but not the good plastic..Not the Old Alienware shiny resurfaced acrylic plastic with the shiney nobs and glow in the dark razor Finishes.

no, Just plastic. The laptop i wanted looked like an inspiron with an alien sticker on it.

If Dell buys AMD, (i only buy AMD products)

Then intel is going to see my business.

Guest said:

Dell is not going to buy AMD.

Guest said:

I'd rather see 3M buy AMD than Dell! :(

yRaz yRaz said:

As an AMD fanboy, I would never buy another AMD product if Dell bought them....

Guest said:

This would be a great move by Dell. The lawsuits mean nothing since one one end there are lawsuits the other end there are agreements. These companies do not dislike each other. If this happens, Dell would make money than they ever have in the past. Now would it be good for the industry, I do not know yet.

Kibaruk Kibaruk, TechSpot Paladin, said:

Is Dell that bad? I'm sort of amazed, what I've heard are all but bad things about Dell

Guest said:

@Guest ("I'd rather see 3M buy AMD than Dell!")

Heatsink clips would become irrelevant.

Guest said:

Guest@7:23AM :Now why would DELL buy AMD when its been refusing to use their products for years!

Why then do we have dozen of Dell PCs here with AMD64 CPU ?

Guest said:

DEll didn't refuse to use AMD chips .. in fact they wanted to use AMD, but then Intel came along with a "marketing budget" to help DELL sell its Pc's. But only if they used Intel Chips.. and this was to the tune, over 4 or 5 years of $2Billion dollars. In fact most of dells profits arise simply from the "marketing" money that Intel gave them. Intel have now been banned and fined for using such practices. But of course the damage to AMd was done. It would make more sense, perhaps, that Apple bought AMD, as they could refine the chip designs for use in their products, but they are too deeply into their own A4 chip, with its superb power saving abilitys. I don't think they want the hassle of owning a Chip mfr, they are more likely to buy a Battery mfr.

Guest said:

You make no sense. Please go look at the lawsuits, Dell and shady deals with Intel have been going hand in hand for years.

madboyv1, TechSpot Paladin, said:

Kibaruk said:

Is Dell that bad? I'm sort of amazed, what I've heard are all but bad things about Dell

Dell, at least its products and not their business practices, is not really as bad as people are making it sound here. It's just that most people don't want to talk about any good experiences with Dell, less they intend to be outcasted. =p

It's kind of like how there are people that refuse to buy Hitatchi "Deathstar" hard drives. One single, but major screwup and people won't even look at the brand anymore. I've used four Hitachi drives after that and three still worked years after, prior to donating them away; the fourth is in an enclosure sitting behind my computer also in working condition

Guest said:

I didn't realize DELL had that kind of capitalization. Anyway, this is just a rumor. To be taken lightly b/c what will DELL do w/ AMD architecture. How will they integrate their cpu/gpu products into their product line and why? ANd stop selling to other vendors? WIll they make that kinda return on profit by sole use in house products? Doubtful.

However, AMD has money problems. They have been running at a loss for multiple years. At this point they pretty much have no choice but to sell to highest bidder. Intel maimed them with their shady marketing/business practices. And, Hector Ruiz killed AMD with the decision to buy ATI. I hope, he is happy ruining such a great IP house w/ so much promise into the ground.

Tomorrow_Rains said:

In my Opinion. Dell destroyed Alienware, instead of those shiney nice looking computers, theyre cheaply made and dont look as nice in the outside as before. ATLEAST they're willing to keep the insides the same. But they have definately ruined the alienware image in the sense that the laptops are no longer a shiney polished plastic, but a plastic that looks like it was an inspiron spray painted with stickers of aliens on it.

Sources - I bought an Alienware after dell bought it to replace my old one i bought from alienware originally

Guest said:

If Dell bought AMD, most other PC OEMs will probably not want to use AMD chips (including the graphics stuff), simply cos that will fuel a direct competitor of their.

This will screw up Dell's new "AMD Division's" profits royally.

So I doubt Dell will buy AMD any time soon, if at all.

edison5do said:

If this this EVER happen, I will break the pig and get an Intel based PC!!! I really dont like Dell Products.

Wendig0 Wendig0, TechSpot Paladin, said:

I'm switching back to Intel regardless of whether AMD is purchased or not. I've been using AMD for the last year, and I've been through 3 different processors already (440 Rana, 965 BE, 1090T), with all coming to a premature death. Maybe it has just been a string of bad luck, but nevertheless it has made a bad impression on me, and I'm sick of the RMA's. Intel's are much faster, more reliable (imo), and have a much better selection of boards to put them on. AMD is bargain basement garbage.

yRaz yRaz said:

Wendig0 said:

I'm switching back to Intel regardless of whether AMD is purchased or not. I've been using AMD for the last year, and I've been through 3 different processors already (440 Rana, 965 BE, 1090T), with all coming to a premature death. Maybe it has just been a string of bad luck, but nevertheless it has made a bad impression on me, and I'm sick of the RMA's. Intel's are much faster, more reliable (imo), and have a much better selection of boards to put them on. AMD is bargain basement garbage.

That's quite odd...I've been building AMD machines for 9 years now and have never had a bad CPU. That sucks though. I've only gotten 2 bad parts, Bad stick of ram and a bad PSU. Intel is faster and does have a wider selection of motherboards, but it is far from bargain basement garbage. BTW, if you ever go with an Intel system I'd be interested in taking that POS 1090T off your hands.

Guest said:

Didn't realize Dell had that kind of capitalization? They offered $2B for 3PAR in the bidding war with HP last fall. To get a rough estimate of "who can buy who", look at their comparitive market cap (market cap = total price to purchase all the company stock):

AMD = $6B

Apple = $330B (was "only" $208B in Jan 2010)

Cisco = $104B

Dell = $27B

EMC = $56B

Google = $200B

HP = $105B

IBM = $200B

Intel = $119B

Microsoft = $227B

Oracle = $166B

AMD's low cap makes them easily digestable by any of the tech heavyweights.

emmzo said:

I s'pose it would make more sense if IBM bought AMD.

Andruku said:

Guest said:

Didn't realize Dell had that kind of capitalization? They offered $2B for 3PAR in the bidding war with HP last fall. To get a rough estimate of "who can buy who", look at their comparitive market cap (market cap = total price to purchase all the company stock):

AMD = $6B

Apple = $330B (was "only" $208B in Jan 2010)

Cisco = $104B

Dell = $27B

EMC = $56B

Google = $200B

HP = $105B

IBM = $200B

Intel = $119B

Microsoft = $227B

Oracle = $166B

AMD's low cap makes them easily digestable by any of the tech heavyweights.

Wow , Dell sell such crap computers and their service/support is complete and utter rubbish, how are they worth so much?

tacobfm said:

Dell's not stupid enough to make the same mistake that they made a couple of years ago. I doubt they're going to go for it.

Guest said:

DELL makes the game of INTEL !!!! DELL had tradition to make INTEL's game before, refusing AMD products. Dont forget, DELL had been helped by Intel few years ago. If DELL buy AMD indeed, is over the competition on CPU-s . All of us we will loose. They' ll manipulate the CPU market

INTEL want to put a plug on the bottle of x86 putting DELL to buy AMD

INTEL dont want competition from AMD Buldozer anymore !!!

AMD shareholders have not to be stupid to sell AMD before Buldozer launch

Relic Relic, TechSpot Chancellor, said:

If the rumor is true I would have expected other tech giants to be interested in AMD over Dell. This move doesn't make a lot of sense to me, and I hope this is as far as it goes.

Guest said:

Loose is an adjective. "If I lose weight, my pants will be loose."

Vrmithrax Vrmithrax, TechSpot Paladin, said:

Dell is bad, Dell refused to use AMD, blah blah blah

Truth is, Dell can make some decent machines, and make a ton of them. They ARE still alive and thriving, after all. Corporate sales tend to keep them humming along nicely, mostly workstations and servers. I can agree, their laptop division has really had some ups and downs in recent years (mostly downs, in my opinion), but they really aren't THAT bad...

And, as for the "refusing to use AMD" hogwash. They didn't REFUSE to use AMD, they just had massive lucrative deals with Intel that prohibited them from using AMD. Big difference. It was Intel's anti-competitive practices(pricing structures, penalties for using competitive products, and questionable bonuses for NOT using competitive products) that were the crux of the lawsuit. Intel was paying Dell not to use AMD, and Dell was going along with it to save money on the best hardware choice for their products. Ah, but we can't point the finger where it belongs (at Intel's practices), so let's make Dell the scapegoat, shall we?

And, just to clarify, I am not saying Dell was innocent in choosing not to use AMD. There were shady dealings going on between Intel and Dell's management, and (as they say) it takes 2 to tango. But, bottom line is, if no deals had been conjured up by Intel to try to strangle AMD's market share, then there would never have been any issue (or lawsuit).

dividebyzero dividebyzero, trainee n00b, said:

If the rumor is true I would have expected other tech giants to be interested in AMD over Dell. This move doesn't make a lot of sense to me, and I hope this is as far as it goes.

Much ado about nothing in my opinion.

If (and it would be a monumentally HUGE if) Dell acquired AMD, what would the chances of AMD CPU's, APU's and GPU's continuing to appear in Hewlett-Packard, Acer/Gateway, Lenovo (Toshiba, Asus etc, etc...) OEM machines? 1%...0% ? Why would any Dell competitor continue to stock AMD options and contribute to Dell's profit line?

DokkRokken said:

Why does this even warrant speculation? It's not as if AMD is a terribly attractive buy in any way, shape, or form at the moment.

Mizzou Mizzou said:

@dividebyzero -

All good reasons why this deal wouldn't make any sense at all for AMD.

Wendig0 Wendig0, TechSpot Paladin, said:

yRaz said:

BTW, if you ever go with an Intel system I'd be interested in taking that POS 1090T off your hands.

You got it... When I can afford the parts for the Intel box, I'll make you a good deal on the 1090T.

Like I said, it may just be a string of bad luck, but I'm pretty much done with AMD.

Sarcasm Sarcasm said:

The question is why would anyone want to buy AMD? Their GPUs are OK but are behind Nvidia's, their current CPU's are getting nothing but pointless 100mhz speed bumps, Bulldozer is taking forever to release and even once it does I suspect nothing but performing lower than expected.

AMD is viewed as a value brand, while appreciated, it cant sustain that image forever. They need to have all bases covered and right now they can only do low end and mid end stuff. High end is dominated by Intel and Nvidia.

Sarcasm Sarcasm said:

Wendig0 said:

yRaz said:

BTW, if you ever go with an Intel system I'd be interested in taking that POS 1090T off your hands.

You got it... When I can afford the parts for the Intel box, I'll make you a good deal on the 1090T.

Like I said, it may just be a string of bad luck, but I'm pretty much done with AMD.

You just have some bad luck or something, but honestly you cant go wrong with Intel. I've used Intel for as long as I can remember, and my 965BE is my first AMD cpu. Although its more than enough for my needs, my next build is going to be Intel. Honestly, it's better to save up and fork for something better even though its more expensive.

AMD has been on a downhill slope the past few years and doesn't look like it will change unless they start making some high end stuff for high end users.

Great1122 said:

They lock all their products, and make it impossible for large-scale upgrades, I wouldn't mind if HP buys them, as long as the quality of the products stay the same, wonder why AMD does so bad even with their own line of GPU's.

TeamworkGuy2 said:

madboyv1 said:

...

Also, not all Dell products are bad (GASP). Their branded IPS displays are some of the best considering their pricepoints and connectivity.

I agree, I have a dell Dimension 5100 that has been running strong for ~5 years. It had a Radeon X300 video card died about 3 months ago, but a new power supply (yes, dell power supplies are replaceable) and a new Radeon 4650 brought it back to life.

"IF" (heavy emphasis) Dell buys AMD, I would still by from AMD. Just because Dell owned them would not turn me away, like AMD acquiring ATI did not ruin ATI. I just finished building my first computer (Athlon II X4 640 based) and I feel that AMD is very strong at the budget and mid range price points.

Great1122 said:

Sorry, the them in the sentence refers to AMD not Dell.

Great1122 said:

Guest said:

Didn't realize Dell had that kind of capitalization? They offered $2B for 3PAR in the bidding war with HP last fall. To get a rough estimate of "who can buy who", look at their comparitive market cap (market cap = total price to purchase all the company stock):

AMD = $6B

Apple = $330B (was "only" $208B in Jan 2010)

Cisco = $104B

Dell = $27B

EMC = $56B

Google = $200B

HP = $105B

IBM = $200B

Intel = $119B

Microsoft = $227B

Oracle = $166B

AMD's low cap makes them easily digestable by any of the tech heavyweights.

Imagine how rich a multi-trillionaire would be, capable of buying all these companies, he'd probably rule the world, but that'd just be an ideal situation, as government would stop him.

Guest said:

Please allow us to resize the text of your articles and comments.

ess333 said:

this stinks ...

Sarcasm Sarcasm said:

TeamworkGuy2 said:

madboyv1 said:

...

Also, not all Dell products are bad (GASP). Their branded IPS displays are some of the best considering their pricepoints and connectivity.

I agree, I have a dell Dimension 5100 that has been running strong for ~5 years. It had a Radeon X300 video card died about 3 months ago, but a new power supply (yes, dell power supplies are replaceable) and a new Radeon 4650 brought it back to life.

"IF" (heavy emphasis) Dell buys AMD, I would still by from AMD. Just because Dell owned them would not turn me away, like AMD acquiring ATI did not ruin ATI. I just finished building my first computer (Athlon II X4 640 based) and I feel that AMD is very strong at the budget and mid range price points.

Some Dell's aren't that bad. I guess it depends on what people expect it to do. We still have a Dell with a Pentium D still running strong. Although extremely slow by today's standards, it still runs apps just fine.

treetops treetops said:

R3DP3NGUIN said:

If Dell buys AMD I am definitely switching to Intel

Same here, Dell's products are over priced and break down a lot. I hope amd stays in the game to keep intel in check and keep giving us best bang for the buck cpus.

lawfer, TechSpot Paladin, said:

AMD makes great products. I'd hate to see Dell acquire it, mainly because Dell products, overall that is, are not on par with AMD's quality; which in turn, could make the products produced out of this merge, inferior ones in comparison. As many have pointed out with Alienware.

However, looking at it from a different standpoint, could it be that maybe this could make Dell produce better products? It's all a variable, to be honest.

But if I, or we, had a choice, I'm positive we'd all choose another company to acquire AMD. I'd personally like ASUS or Toshiba to acquire AMD, maybe HP. (Hell, even Acer!)

Hopefully, this is nothing but a rumor.

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