Oh god no: Rumor: Dell to buy AMD

[morkus64]

I *wish* this were true, but I'm a little wary of the rumor too. I read something about IBM being more likely to buy out AMD than Dell... I don't see it.

 

[GlacierFreeze]

I can see why some would not want this, but this could be huge for AMD (and even Dell to a somewhat lesser extent) if done right.

AMD gets a significant boost in market share and Dell gets chips/gpus/mobos (entire setups) for a decent amount cheaper.

 

[RavenSEAL]

If AMD goes, that would make Intel a monopoly, Mr. Obama would like a word with them.

 

[Nemesis 1]

Well my grandsons playmate heard from his younger brother that that Meyers was hired by NV. Thats my grandson in my avatar.

 

[OCGuy]

If AMD goes, that would make Intel a monopoly, Mr. Obama would like a word with them.

Next time somebody tries to take Intel to task for being a monopoly, it will be much tougher than before.

We live in a world where phones are basically computers. iPads. Netbooks.

You would have to paint them into a corner as an x86 monopoly, which I doubt would fly. Now if they are successful against ARM, etc in the future......I can see a Standard-Oil/Bell break-up.

 

[IntelUser2000]

It just doesn't make sense. If Bulldozer and/or Llano turns out well, they don't need to buy AMD to do that. Dell's market cap is what, 27B, and AMD is near 6B now? That's probably the least they'll pay. That's a substantial amount for Dell. And for what? Just so they can get the monopoly on the AMD chips, when they can decide to do that already?

 

[morkus64]

It just doesn't make sense. If Bulldozer and/or Llano turns out well, they don't need to buy AMD to do that. Dell's market cap is what, 27B, and AMD is near 6B now? That's probably the least they'll pay. That's a substantial amount for Dell. And for what? Just so they can get the monopoly on the AMD chips, when they can decide to do that already?

That was the argument for IBM to buy them out instea. Here's that article I mentioned: http://www.fool.com/investing/general/2011/02/15/is-amd-for-sale.aspx

 

[cotak13]

It just doesn't make sense. If Bulldozer and/or Llano turns out well, they don't need to buy AMD to do that. Dell's market cap is what, 27B, and AMD is near 6B now? That's probably the least they'll pay. That's a substantial amount for Dell. And for what? Just so they can get the monopoly on the AMD chips, when they can decide to do that already?

+1 on this and -N to everything else about how it anyone buying AMD makes sense.

Where to start? Dell buying AMD is about the more left field idea there is. You are talking about a company that is not even 20% of the global PC market. Why would they or any other computer vendor tie themselves to 1 CPU company? They have to keep using intel stuff so the optics of that will be great wouldn't it? A company that designs and make CPUs buying chips from the competition. Plus Dell is arguably one of the most intel friendly PC firms for a very long time (http://www.dailyfinance.com/story/c...settles-intel-chip-exclusivity-case/19565880/).

Further more. I'd like to point out the idea that Dell should buy AMD to have a stick to beat apple with is missing the point. Most of Apple's silicon hardware is not exclusive to apple. What is exclusive to Apple is their software. And that's where the PC makers have been having trouble providing an answer to Apple. They can if they want to build something just as robust and nice looking as Apple. Or they can get close. The thing is it'll cost just as much as Apple's stuff. But it'll run windows. And, putting aside the argument of whether OS X or windows is better, people will look at these expensive well built machines that run windows and think well, I can get the same spec but cheaper. That is fundamentally the problem PC makers face vs Apple. They don't have that vertical integration that allows Apple to built it's user experience. And that's not going to change anytime soon, not with them using Windows and relying on MS to deliver OS X beating OS.

As for IBM. Again. What's the upside? Taking on a company that's small. That is profitable but not raking it in and has considerable debt. To do what with? How will it improve their numbers?

 

[cbn]

Further more. I'd like to point out the idea that Dell should buy AMD to have a stick to beat apple with is missing the point. Most of Apple's silicon hardware is not exclusive to apple. What is exclusive to Apple is their software. And that's where the PC makers have been having trouble providing an answer to Apple.

Agreed. I do admit that idea was a long shot guess.

 

[Dadofamunky]

Well my grandsons playmate heard from his younger brother that that Meyers was hired by NV. Thats my grandson in my avatar.

It's very cute, as most babies are.

I still think this is complete balderdash. Now if it were IBM I'd take it seriously, or even HP. Either of those would make a lot more sense than Dell, which has had more than its share of problems lately. I don't think they're in acquisitions mode unless it's really strategic (although they did try really hard to land 3par). This doesn't smell right.

 

[PreferLinux]

I don't think HP would make sense as they helped Intel design Itanium. (Which, in case anyone is wondering, is still alive and well.)

 

[Dribble]

Perhaps DELL's Intel discount is up for re-negotiation and they just wanted to put a little pressure on Intel?

 

[Arkadrel]

Perhaps DELL's Intel discount is up for re-negotiation and they just wanted to put a little pressure on Intel?

^ This
it makes more sense than most of the other stuff in this thread.

 

[BlahBlahYouToo]

So long as AMD continues to offer CPUs to the OEM market, I would be happy to see Dell buy them out.

doesn't OEM mean to manufacturers like Dell, HP.

so wouldn't you mean retail market, or end user market?

 

[BladeVenom]

That was the argument for IBM to buy them out instea. Here's that article I mentioned: http://www.fool.com/investing/general/2011/02/15/is-amd-for-sale.aspx

Thanks. I also think that IBM buying them makes more sense than Dell.

 

[BlahBlahYouToo]

doesn't OEM mean to manufacturers like Dell, HP.

so wouldn't you mean retail market, or end user market?

anyone?

 

[Arkadrel]

http://www.fool.com/investing/general/2011/02/15/is-amd-for-sale.aspx

ARM is going to buy AMD!!!!!



Why not? Then they have everything. x86, RISC, then entire suite of cpu's and gpu's would be controlled by one company, from mobile to server. An ARM-AMD merger would also scare the bejeezzous out if Intel.

Man that had me laughing so hard ^-^
But like person under him says, ARM is too small a company (fun idea though).


IBM makes alot more sense, 3 reasons why:

1) Sam Palmisano would love to correct his mistakes of the 1970's when IBM invented the PC and let INTC and MSFT own the CPU & OS.

2) AMD and IBM have a long history of working together on chip designs and general processor technology.

3) A stock-swap deal structure would inflict much less dilution on IBM shareholders because its float and market cap are an order of magnitude larger.

 

[morkus64]

Perhaps DELL's Intel discount is up for re-negotiation and they just wanted to put a little pressure on Intel?

Probably this too, but I wonder if the rumors might make something happen, either with Dell or IBM.

 

[BlahBlahYouToo]

doesn't OEM mean to manufacturers like Dell, HP.

so wouldn't you mean retail market, or end user market?

no one?

 

[Idontcare]

no one?

The answer is such an obvious "yes" that I suspect pretty much everyone who read your post assumed you were asking a rhetorical question.

That's not a dig on you, we just so rarely have members here who don't know what OEM implies. Kinda like if you had asked:

1 + 1 = 2, yes?

obvious answer is obvious, so your question must not really be a question.

 

[BlahBlahYouToo]

The answer is such an obvious "yes" that I suspect pretty much everyone who read your post assumed you were asking a rhetorical question.

That's not a dig on you, we just so rarely have members here who don't know what OEM implies. Kinda like if you had asked:

obvious answer is obvious, so your question must not really be a question.

no, it was an honest question.
i thought perhaps maybe i had it the other way around.

so just to be clear.
OEM- Dell, HP, Apple, etc., so SickBeast meant to say retail or end user if I'm understanding the intent of his post.

 

[podspi]

no, it was an honest question.
i thought perhaps maybe i had it the other way around.

so just to be clear.
OEM- Dell, HP, Apple, etc., so SickBeast meant to say retail or end user if I'm understanding the intent of his post.

Actually, I think the OEM market is more important from a competitive standpoint than end-user retail. If AMD still supplied end-users but pulled out of the OEM market, Intel would be able to price their CPUs very, very high (since they would be an effective OEM monopoly).

Of course, for us we care about the retail market as well. But most people don't build their own computers, and almost none of us build our own laptops

 

[gorobei]

i cant see a whole lot of upside to a full buyout by dell or any other name brand, but would it make sense for them to buy a partial position in order to have some say over the direction of development? So, if dell wants to try to innovate a new concept/formfactor/market and need a custom cpu/chipset/soc within exacting power-performance specs they dont have to wait for ARM or Intel to come up with something. Or can they do that now just by dangling the contract money in front of AMD?

 

[Arkadrel]

Or can they do that now just by dangling the contract money in front of AMD?

Money talks,... Id think AMD would take on certain things or even add certain things to their CPUs if someone wanted it.

Supposed oracle had some ingenius way to improve database speeds, and wanted AMD to impliment it. I dont even think oracle would have to pay anything for it... server parts would just get it added, and the payoff would come from extra sales such a part would give in performance.

A contract would probably do it though, I even think Intel works the same.

Its a business efterall... as long as it pays off, why not?

 

[Idontcare]

no, it was an honest question.
i thought perhaps maybe i had it the other way around.

so just to be clear.
OEM- Dell, HP, Apple, etc., so SickBeast meant to say retail or end user if I'm understanding the intent of his post.

Yeah I realize that now, we all realize that now, just was explaining why your post went seemingly ignored.

When we don't ignore the rhetorical questions then we get hit with the "uh dude, your batteries are broken in your sarcasm meter" quips.

damned if we do, damned if we don't

And yes, beast had it backwards, but I think even he will admit that is usually the case more often than not (I kid beast, I kid!)