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Private equity to buy 20 per cent of AMD

tenks

Senior member
Charlie at Semi Accurate has been hinting at this for weeks. And now apparently fudzilla caught wind of it. I know a lot of you will question the sources, but something HAS been going on at AMD for awhile and we learned through the CEO it wasn't going to be a buyout or sale..So this lines up..

Our well informed industry sources have told us that AMD is about to sell 20 percent of its stake to a private equity outfit called Silver Lake.

Fudzilla got this from multiple, independent industry sources that want to remain anonymous. Silver Lake was the outfit which was behind Michael Dell's take over of his company and has piles of cash.

The company advertises itself as a global leader in technology investing and that have invested money in brands like Alibaba, Avago, GoDaddy,Motorola Solutions, Opera Solutions and many others has prepared to bite the significant part of AMD.

This could be AMD's big break as it will get the money that it desperately needs. AMD has been sinking under financial problems as its CPU roadmap is not that great and it is hard for AMD to compete with Nvidia in the mainstream and entry level graphics market.





http://www.fudzilla.com/news/processors/38694-private-equity-to-get-20-percent-of-amd
 
Why would they want to own 20% of a turd?

Because there are talented engineers and developers at AMD, just not enough of them, and their management needs to be booted. A decent injection of cash can get things moving quicker so a product gets into production and into customer hands sooner.
 
Why do people read SA? And even worse, relay "news" from there?

This is from fudzilla. I'm just saying there seem to be a lot of people saying this will happen and now another one popped up. Didn't you post the CEO stuff about how she wasn't selling and there was a plan in place or something? I mean this lines up with that.
 
This is from fudzilla. I'm just saying there seem to be a lot of people saying this will happen and now another one popped up. Didn't you post the CEO stuff about how she wasn't selling and there was a plan in place or something? I mean this lines up with that.

And the source for Fudzilla is SA.
 
I hope charlie isn't messing with us
LESstFE.jpg
 
Well, Silver Lake does take some big risks. Usually, the are in to streamline a company and make them profitable for sale, IIRC.
 
Also, this from AT:

http://anandtech.com/show/9612/amd-...ion-radeon-whole-once-more-led-by-raja-koduri

AMD Reorganizes Graphics Division - Radeon Whole Once More, Led By Raja Koduri
[...]
It was a bit over nine years ago when AMD announced that they would acquire ATI, the Canadian graphics firm, developer of Radeon GPUs, and constant competitor to NVIDIA. In acquiring ATI, AMD set forth on a massive plan that forever changed how AMD went about building CPUs. The CPU alone would soon no longer be enough; CPUs would need to become something closer to SoCs, integrating I/O, graphics, and more. In AMD’s eyes the future would be fusion, and it would be ATI who would the missing pieces that would in time make AMD’s future whole.

By and large AMD achieved their technical goals with the ATI acquisition.
[...]
None of this could have happened for AMD without the ATI acquisition, and while AMD paid a high price at the time for the technology, in the long run it’s very likely that the fusion of AMD and ATI is what has kept the modern AMD an important player in the current marketplace.
[...]
The end result is that after 9 years there is a reluctant admittance within AMD that such a deep fusion of the businesses has not worked out like AMD expected. GPUs are still essential to AMD’s technology plans and the technology fusion is critical to how AMD operates, but how those products are developed and marketed within AMD needs to change. Consequently AMD has decided to take a step back and to reevaluate how they want to organize their graphics business. And the outcome of that evaluation is that the graphics business will once again become whole, with AMD in a sense turning back the clock and keeping graphics as its own unit.

Leading this new group is AMD veteran Raja Koduri.
Primarily GPU related, but affects APU/CPU too.
 
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I would believe it if there was an actual financial news source. This type of major deal with a significant listed company and well known private equity group would usually appear somewhere in financial news more than a little tech website.
 
Charlie at Semi Accurate has been hinting at this for weeks. And now apparently fudzilla caught wind of it. I know a lot of you will question the sources, but something HAS been going on at AMD for awhile and we learned through the CEO it wasn't going to be a buyout or sale..So this lines up..







http://www.fudzilla.com/news/processors/38694-private-equity-to-get-20-percent-of-amd


You are right. I do question the sources. We have had one rumor after another in this vein over the past couple of years and nothing has happened. Maybe this one will finally come true, but I remain skeptical. The stock *is* really cheap now, it might not be a bad risk for some company with money to speculate with.
 
Not sure how old you are? At one point in time Apple was considered a turd. Sometimes great things grow out of turds....Literally!

And sometimes it just lays there and stinks, literally.

In any case, apple is a very unusual case, they started a whole new market segment. Dont see that happening with AMD. If Zen is good and they can hold on for HBM apus, they might make a modest comeback.
 
Not sure how old you are? At one point in time Apple was considered a turd. Sometimes great things grow out of turds....Literally!

Yeah, I guess the same argument could be said for why any crappy business could one day do well, but how many "Apples" have you seen in your lifetime?
 
With 14nm now available to them -- they can make some pretty compelling products.
With a smaller, focused company...... They have the potential to do some great things.

The bottom line -- excluding the Bulldozer fiasco, AMD has always had a great deal of engineering talent.

AMD also appears to have a sizeable performance advantage right now for DirectX12 in regards to their video card lineup. Windows 10 is already on 25 million devices -- so perhaps Private Equity seems a financial play.
 
With 14nm now available to them -- they can make some pretty compelling products.
With a smaller, focused company...... They have the potential to do some great things.

The bottom line -- excluding the Bulldozer fiasco, AMD has always had a great deal of engineering talent.

AMD also appears to have a sizeable performance advantage right now for DirectX12 in regards to their video card lineup. Windows 10 is already on 25 million devices -- so perhaps Private Equity seems a financial play.

"DX12 will save AMD" or "AMD will win in PC because console APUs" is wishful thinking at its finest.
 
What does "20 percent of its stake" mean exactly?
They are buying 20% of the shares on the market, or AMD is selling them private shares, or something else?
 
If true..
"Basically, they're buying 20 per cent of the company's shares.
That said, their shares will be voting shares and will likely give the investment group positions on the board. That gives Silver Lake a certain amount of control over the future of the company: it could veto things that AMD's other shareholders want to do, or even pressure said shareholders into doing things that they otherwise wouldn't have done. That could include splitting off the graphics division into a separate company."
 
This news is good if Silver Lake is serious about allowing AMD to plow that money into software support for their products. Drivers and HSA/OpenCL in particular.
 
What does "20 percent of its stake" mean exactly?
They are buying 20% of the shares on the market, or AMD is selling them private shares, or something else?

AMD will issue 25% more shares. Every current stockholder's worth drops by 25%.

They did it when they spun off GloFo. Who knows if they would do it again?
 
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