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AMD CEO Says: We are not for sale, But Are Happy to Listen to Proposals

Qianglong

Qianglong

Senior member
http://www.reuters.com/article/idUSTRE69525920101006

"AMD is not for sale, but we are happy to listen to any proposal which is in the interest to our shareholders," Chief Executive Dirk Meyer told an industry conference in Barcelona on Wednesday."

I am thinking that is the only politically correct way of a CEO telling the public about rumors and speculations?
 
It is funny, but when I see a comment like that, where it appears to be unsolicited, I usually believe the opposite of what the man says. In this case, I actually think there is a good possibility of Oracle buying AMD, while I didn't think much of that possibility before I read that quote.

The reasoning behind this is that the CEO had nothing to gain by stating that the company was not for sale, unless he was trying to drive up the price of selling the company. Otherwise there is no reason to even talk publically about the subject.
 
Martimus said:
It is funny, but when I see a comment like that, where it appears to be unsolicited, I usually believe the opposite of what the man says. In this case, I actually think there is a good possibility of Oracle buying AMD, while I didn't think much of that possibility before I read that quote.

The reasoning behind this is that the CEO had nothing to gain by stating that the company was not for sale, unless he was trying to drive up the price of selling the company. Otherwise there is no reason to even talk publically about the subject.
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He said this statement during a tech conference at Barcelona to celebrate the first year of the Fusion Partner Program when some analyst asked him this question. So I am not sure if it is totally "unsolicited"
 
Qianglong said:
He said this statement during a tech conference at Barcelona to celebrate the first year of the Fusion Partner Program when some analyst asked him this question. So I am not sure if it is totally "unsolicited"
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Yep, I don't think anything can be read into his answer, as it WAS solicited. And, his reply sounds like the type of open-ended answer a CEO would give: "We're not for sale, but...".
 
Nintendesert said:
EVERY publicly traded company is up for sale for the right offer. Each and every single one of them.
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In the business world of M&A (mergers and acquisitions) there is significance to the distinction of saying your company is "for sale" or "not for sale".

Companies put themselves "up for sale" in the business world in similar vein to you or I would putting our house up for sale.

When you and I are happy with our house, like our neighborhood and have no reason to move we aren't likely to contact a realtor and put our house on the market, at any price. But if someone knocks on our door one day and says "I'll buy your house for $1000/sqft" then we are probably going to entertain the idea.

Same with businesses.

Businesses really do shop themselves around as takeover targets. Just as their are real-estate agents that we hire to help get our house sold there are also M&A broker dealers out there whose entire career revolves around getting your business old.

I'll give you a real-world example. Semitool (and equipment manufacturer for semiconductor fabs) had themselves "up for sale" for about 2 yrs before being bought by AMAT (applied materials, another equipment manufacturer).

So when a CEO of a company such as Dirk Meyers of AMD goes on record to say "we are not for sale" that has a specific connotation in the business world. It means they truly do not have a for sale sign up, but of course if someone shows up at there door with a ridiculous "make me move" price in mind then Dirk would be neglecting his fiducial responsibilities by not accepting the silly-good deal for his shareholders.

(kind of like AMD showing up on ATI's door and offering $5B+ for their shareholders...😛)

The bottom line though is that Dirk's statement is hollow and misdirecting, and that itself is telling. Dirk knows that the value-add statement would have been something along the lines of saying "we are not in negotiations or discussions of any sort with any business entity regarding our being acquired by them". That would have answered the question on everyone's mind. The fact that he opted to not deliver such a clear message says a lot, to me anyway.
 
I wonder by "entertaining some offers" AMD stock might get a boost or not?! I think they will and that is what he's aiming to get out of this publicity.
 
Idontcare said:
I don't know if google would make a good manager of an IC design-company like AMD but Samsung would.
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I agree with this statement. Samsung is a giant big enough (and diverse enough, and also very aggressive) to contribute so much resources and not lack in management direction if they were to acquire a company such as AMD. They are already so much engrossed in electronics R&D and fabrication anyway.
 
Martimus said:
The reasoning behind this is that the CEO had nothing to gain by stating that the company was not for sale, unless he was trying to drive up the price of selling the company. Otherwise there is no reason to even talk publically about the subject.
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So your answer when asked if the company was for sale would be..?
 
I would answer the question to the best of my knowledge. I don't know the question that he was asked, so it is difficult to know what my response would be. Plus I don't know the situation his company is actually in, so I can't really say how I would react.
 
AMD regularly loses millions or billions of dollars. It would be news if he announced he was paying someone to take the company.
 
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