S
sprite scaler
IBM Takeover of AMD Speculations Arise
Speculations that microchip maker AMD might be bought by IBM surfaced
the last couple of days, rising AMD's stock shares by 8% yesterday.
Neither parties have commented on the rumour, which however proved to
be enough to offer AMD's share a a significant boost. At the same
time, IBM's stock was down yesterday by 1.7 percent on the New York
Stock Exchange.
Some analysts have predicted that with AMD shares being so low, it
might be a good time for IBM to acquire them. IBM has had a research
and development expense-sharing agreement with AMD. AMD might want to
use IBM's East Fishkill, New York, chip-fabrication plant to build
microprocessors, in an effort to stengthen its position against rival
Intel, who currently has 12 chipmaking plants across the globe,
compared to AMD's single chip fabrication plant in Germany.
On the other hand, IBM's recent policy to move away from hardware and
manufacturing and moving to software and solutions, make the
acquisition a low-probability event. IBM sold its computer hard disk
business to Hitachi in 2002 and its PC business to China's Lenovo
Group in 2005. Last year, IBM sold its printer business to Japan's
Ricoh. Earlier Wednesday, IBM said it was buying privately held
AptSoft Corp to expand its business event processing software
portfolio.
Mergermarket.com, a mergers-focused news service, reported on the
Financial Times' Web site that IBM and AMD could strengthen their
current partnership.
"A deal could see IBM's microelectronics division merge with AMD at
some point, possibly in the near term," mergermarket.com correspondent
David Zielenziger wrote, citing "industry sources."
http://www.cdrinfo.com/Sections/News/Details.aspx?NewsId=22347
By Philipp Gollner and Duncan Martell
SAN FRANCISCO (Reuters) - Advanced Micro Devices shares rose as much
as 8 percent on Wednesday on speculation that the microchip maker
might be bought by IBM, but analysts said the chances of an
acquisition were slim.
Spokesmen for IBM and AMD, based in Sunnyvale, California, declined to
comment on the rumor.
Shares of AMD, the second-largest maker of microprocessors after Intel
Corp , added as much as 55 cents to $7.39 and were up 23 cents or 3.4
percent at $7.07 in afternoon trading. International Business Machines
Corp stock was down $1.73 or 1.7 percent at $99.58 on the New York
Stock Exchange.
"The takeover of AMD by IBM has been mentioned before and with AMD
shares being so low, it might be a good time for IBM to acquire them,"
said William Lefkowitz, options strategist at brokerage firm vFinance
Investments in New York.
AMD call options were trading higher than usual because of the rumor,
he added.
IBM of Armonk, New York, has had a research and development expense-
sharing agreement with AMD, and analysts have speculated that AMD
might want to use IBM's East Fishkill, New York, chip-fabrication
plant to build microprocessors.
An acquisition of AMD would be "a pretty low-probability event because
IBM is moving away from hardware and manufacturing and moving to
software and solutions," said Ashok Kumar, an analyst at CRT Capital
Group. "I don't think IBM wants the bragging rights to go up against
Intel."
"IBM buying AMD is a nonstarter," Kumar said. "There's no rationale
for that. Investors would just pound IBM's stock."
IBM has been exiting computer hardware businesses to focus on higher-
profit software and technology services tailored to clients.
Earlier Wednesday, IBM said it was buying privately held AptSoft Corp
to expand its business event processing software portfolio.
Revenue from IBM's microelectronics business fell 15 percent in the
fourth quarter. The unit mainly supplies chips to run IBM's mainframe
computers and business server machines.
IBM sold its computer disk-drive business to Hitachi Ltd in 2002 and
its personal-computer business to China's Lenovo Group Ltd in 2005.
Last year, IBM sold its printer business to Japan's Ricoh Co Ltd
(7752.T: Quote, Profile, Research).
An acquisition of AMD would "destroy shareholder value for IBM," Kumar
said. "That argument is a nonstarter."
AMD has said it would give details of its "asset-light" manufacturing
strategy sometime this year. AMD currently has a chip fabrication
plant, or fab, in Germany and has plans to build another one outside
Albany, New York.
Intel, by comparison, has some 12 chipmaking plants across the globe,
and its manufacturing prowess has long been a competitive advantage
against smaller rival AMD.
Mergermarket.com, a mergers-focused news service, reported on the
Financial Times' Web site that IBM and AMD could strengthen their
current partnership.
"A deal could see IBM's microelectronics division merge with AMD at
some point, possibly in the near term," mergermarket.com correspondent
David Zielenziger wrote, citing "industry sources."
http://www.reuters.com/article/hotStocksNews/idUSN2341197920080123
Newest Reuters wire claims IBM is considering a purchase of struggling
AMD
Few will argue that AMD's image and profitability are not what they
used to be. AMD was having issues prior to its purchase of graphics
maker ATI and things have only worsened since the ATI purchase.
DailyTech reported last week that AMD posted a massive loss for Q4
2007 of $1.72 billion while rival Intel posted significant profits
across its operations. Between new architectures and aggressive
pricing, a shakeup in the microprocessor arena is almost certain for
2008.
Reuters now reports IBM is possibly considering a buyout of
floundering AMD and some say this would be an ideal time for the
buyout with AMD stock prices at a low. IBM and AMD currently have a
research and development expense-sharing deal in place. This is not
the first time rumors of an IBM buyout of AMD have circulated.
Other companies have their eye on AMD as well. Texas Instruments and
Freescale have both expressed interest in turning AMD around.
Analyst Ashok Kumar from CRT Capital Group claims, "[IBM buying AMD
is] a pretty low-probability event because IBM is moving away from
hardware and manufacturing and moving to software and solutions. I
don't think IBM wants the bragging rights to go up against Intel."
IBM sold its hard drive making business to Hitachi in 2002 and sold
its PC business to Lenovo in 2005. According to Kumar an IBM purchase
of AMD would "destroy shareholder value for IBM.
http://www.dailytech.com/Report+IBM+Could+Make+a+Move+for+AMD+Analysts+Doubtful/article10456.htm
Speculations that microchip maker AMD might be bought by IBM surfaced
the last couple of days, rising AMD's stock shares by 8% yesterday.
Neither parties have commented on the rumour, which however proved to
be enough to offer AMD's share a a significant boost. At the same
time, IBM's stock was down yesterday by 1.7 percent on the New York
Stock Exchange.
Some analysts have predicted that with AMD shares being so low, it
might be a good time for IBM to acquire them. IBM has had a research
and development expense-sharing agreement with AMD. AMD might want to
use IBM's East Fishkill, New York, chip-fabrication plant to build
microprocessors, in an effort to stengthen its position against rival
Intel, who currently has 12 chipmaking plants across the globe,
compared to AMD's single chip fabrication plant in Germany.
On the other hand, IBM's recent policy to move away from hardware and
manufacturing and moving to software and solutions, make the
acquisition a low-probability event. IBM sold its computer hard disk
business to Hitachi in 2002 and its PC business to China's Lenovo
Group in 2005. Last year, IBM sold its printer business to Japan's
Ricoh. Earlier Wednesday, IBM said it was buying privately held
AptSoft Corp to expand its business event processing software
portfolio.
Mergermarket.com, a mergers-focused news service, reported on the
Financial Times' Web site that IBM and AMD could strengthen their
current partnership.
"A deal could see IBM's microelectronics division merge with AMD at
some point, possibly in the near term," mergermarket.com correspondent
David Zielenziger wrote, citing "industry sources."
http://www.cdrinfo.com/Sections/News/Details.aspx?NewsId=22347
By Philipp Gollner and Duncan Martell
SAN FRANCISCO (Reuters) - Advanced Micro Devices shares rose as much
as 8 percent on Wednesday on speculation that the microchip maker
might be bought by IBM, but analysts said the chances of an
acquisition were slim.
Spokesmen for IBM and AMD, based in Sunnyvale, California, declined to
comment on the rumor.
Shares of AMD, the second-largest maker of microprocessors after Intel
Corp , added as much as 55 cents to $7.39 and were up 23 cents or 3.4
percent at $7.07 in afternoon trading. International Business Machines
Corp stock was down $1.73 or 1.7 percent at $99.58 on the New York
Stock Exchange.
"The takeover of AMD by IBM has been mentioned before and with AMD
shares being so low, it might be a good time for IBM to acquire them,"
said William Lefkowitz, options strategist at brokerage firm vFinance
Investments in New York.
AMD call options were trading higher than usual because of the rumor,
he added.
IBM of Armonk, New York, has had a research and development expense-
sharing agreement with AMD, and analysts have speculated that AMD
might want to use IBM's East Fishkill, New York, chip-fabrication
plant to build microprocessors.
An acquisition of AMD would be "a pretty low-probability event because
IBM is moving away from hardware and manufacturing and moving to
software and solutions," said Ashok Kumar, an analyst at CRT Capital
Group. "I don't think IBM wants the bragging rights to go up against
Intel."
"IBM buying AMD is a nonstarter," Kumar said. "There's no rationale
for that. Investors would just pound IBM's stock."
IBM has been exiting computer hardware businesses to focus on higher-
profit software and technology services tailored to clients.
Earlier Wednesday, IBM said it was buying privately held AptSoft Corp
to expand its business event processing software portfolio.
Revenue from IBM's microelectronics business fell 15 percent in the
fourth quarter. The unit mainly supplies chips to run IBM's mainframe
computers and business server machines.
IBM sold its computer disk-drive business to Hitachi Ltd in 2002 and
its personal-computer business to China's Lenovo Group Ltd in 2005.
Last year, IBM sold its printer business to Japan's Ricoh Co Ltd
(7752.T: Quote, Profile, Research).
An acquisition of AMD would "destroy shareholder value for IBM," Kumar
said. "That argument is a nonstarter."
AMD has said it would give details of its "asset-light" manufacturing
strategy sometime this year. AMD currently has a chip fabrication
plant, or fab, in Germany and has plans to build another one outside
Albany, New York.
Intel, by comparison, has some 12 chipmaking plants across the globe,
and its manufacturing prowess has long been a competitive advantage
against smaller rival AMD.
Mergermarket.com, a mergers-focused news service, reported on the
Financial Times' Web site that IBM and AMD could strengthen their
current partnership.
"A deal could see IBM's microelectronics division merge with AMD at
some point, possibly in the near term," mergermarket.com correspondent
David Zielenziger wrote, citing "industry sources."
http://www.reuters.com/article/hotStocksNews/idUSN2341197920080123
Newest Reuters wire claims IBM is considering a purchase of struggling
AMD
Few will argue that AMD's image and profitability are not what they
used to be. AMD was having issues prior to its purchase of graphics
maker ATI and things have only worsened since the ATI purchase.
DailyTech reported last week that AMD posted a massive loss for Q4
2007 of $1.72 billion while rival Intel posted significant profits
across its operations. Between new architectures and aggressive
pricing, a shakeup in the microprocessor arena is almost certain for
2008.
Reuters now reports IBM is possibly considering a buyout of
floundering AMD and some say this would be an ideal time for the
buyout with AMD stock prices at a low. IBM and AMD currently have a
research and development expense-sharing deal in place. This is not
the first time rumors of an IBM buyout of AMD have circulated.
Other companies have their eye on AMD as well. Texas Instruments and
Freescale have both expressed interest in turning AMD around.
Analyst Ashok Kumar from CRT Capital Group claims, "[IBM buying AMD
is] a pretty low-probability event because IBM is moving away from
hardware and manufacturing and moving to software and solutions. I
don't think IBM wants the bragging rights to go up against Intel."
IBM sold its hard drive making business to Hitachi in 2002 and sold
its PC business to Lenovo in 2005. According to Kumar an IBM purchase
of AMD would "destroy shareholder value for IBM.
http://www.dailytech.com/Report+IBM+Could+Make+a+Move+for+AMD+Analysts+Doubtful/article10456.htm