Sign up for a new account or log in here:
Advanced Micro Devices has reportedly hired J.P. Morgan to help them explore options moving forward. The bank will be in charge of advising the struggling chip maker with regards to selling the whole company or possibly splitting their operations, according to a new report from Reuters.
The publication says that an outright sale isn’t top priority. At this hour, some believe that J.P. Morgan is simply helping AMD to value their assets and determine how to best use them for maximum revenue. This could mean that AMD will ultimately jettison some of their patent portfolio, a move that would bring in some extra money and give shareholders peace of mine – at least temporarily.
CNET was able to speak to someone familiar with the situation who told them AMD isn’t considering a sale. Details remain unknown but that’s typically the nature of these types of rumors early on.
For their part, an AMD spokesperson said the company was not actively pursuing a sale of the company or significant assets right now. Furthermore, the board and management believe the current strategy in place will drive long-term growth by levering their highly-differentiated assets. It’s a move they hope will enhance shareholder value, according to the statement.
The continued downturn of the PC market combined with the fact that AMD has yet to enter the booming smartphone and tablet race has taken its toll on the company.
Stock value in AMD jumped to nearly 20 percent following the news but ultimately closed at just five percent higher at $2.09 per share.
Update: AMD has issued the following statement denying reports that it might put itself up for sale: "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. AMD is not actively pursuing a sale of the company or significant assets at this time."
Get free exclusive content, learn about new features and breaking tech news.