AMD hires J.P. Morgan to help value assets and explore options (Updated)

By on November 14, 2012, 8:30 AM

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."

User Comments: 6

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Guest said:

Its the time Apple buy whole AMD company.

EEatGDL said:

Very very sad news lately with AMD. Bulldozer were just numbers in specs but didn't achieve what most of us expected; they have to re-think marketing strategy and company goals if they want to preveil just like Intel did with the 386 and "Intel Inside" when they were selling their own processor with Compaq.

I don't remember any AMD's sloggan, or marketing to position their products, give people in general an idea of how they're different, what they're targeting and why you should buy them and not the competitor's. Not just "we sell our chips cheaper". And companies like Dell should also sell more models with AMD as option; Intel is practicly everywhere. Making a long story short... they have to fight for more presence in the market, seduce buyers who don't care about benchmarks and need something that AMD can do better than Intel in their daily life basis.

Alvaro Alvaro said:

"...and give shareholders peace of mine..."

Arm? Leg? Also, one for all shareholders or one for each? You might be left with no body if it was the latter.

1 person liked this | Guest said:

"Its the time Apple buy whole AMD company."

Thanks for destroying the whole internet with that comment.

captainawesome captainawesome said:

Its the time Apple buy whole AMD company.

And what good do you think that will bring to the general population that aren't mindless Apple followers

PinothyJ said:

*Piece of mind...

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