Printed from http://www.electronista.com

Reuters: AMD hires JPMorgan Chase to evaluate financials

updated 05:44 pm EST, Tue November 13, 2012

Possible sale of patents or company being examined

Chip designer and manufacturer Advanced Micro Devices has brought JPMorgan Chase & Company in to evaluate future fiduciary options, including a possible sale, according to sources familiar with the situation. Sources told Reuters that a sale of the company is on the table, but not a priority, and other possibilities include a sale of its lucrative patent portfolio.

"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," spokesman Drew Prairie said.

AMD's stock rose five percent on the news, ending at $2.09 on the day. The shares have plummeted more than 60 percent this year due to it suffering from the industry's transition to mobile. The company has a market value of $1.4 billion, well below its debt obligations of $2 billion. Google, Samsung, Intel, and Microsoft have been named by analysts as potential purchasers that would benefit from AMD's misfortune, either by buying the company wholesale or investing in its patents.

Following the departure of its Chief Financial Officer Thomas Seifert in September, AMD announced layoffs of 15 percent of its workforce less than a month later. Bernstein analyst Stacy Rasgon compared AMD's decline as "watching a slow-motion train wreck."



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

JBL Synchros E40BT headphones

For all the different configurations of headphones on the market, it's always a tough choice for buyers to get something that is just ...

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Cambridge Audio DacMagic XS

Every computer with a microphone or headphone port has one -- a digital to analog converter (DAC). There are nearly as many chipsets a ...

Sponsor

toggle

Most Commented

 
toggle

Popular News