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Rumour: Dell to buy AMD?

There is no denying that AMD is currently facing yet another rough patch, but it appears that the situation over at the Sunnyvale chip company might be a lot worse than what the company is willing to let on. Apparently, the recent string of departures from AMD's senior executive board has sparked off rumours that the higher-ups are planning to put the company up for sale, and well…the logo up there says it all. But what are the chances of such an acquisition actually taking place?

It is no secret that things have not been going AMD's way of late, in spite what the company would attempt to have most people believe. Granted, the world's second largest global supplier of x86 chips may have been making the headlines about various new product launches and plans for the past few weeks, but just as attention-grabbing as its product press releases were the sudden departures of two of its company's senior executive board, namely CEO Dirk Meyer and COO Robert Rivet.

And with AMD offering little information to shareholders and the media as to why two members of its executive board would walk out on the company at such short notice, needless to say the AMD rumour mill is once again open for business. Except that this time, it seems the personnel running the rumour mill have come to only one possible conclusion: AMD's board is preparing to put the company up for sale, and Dell appears to have been identified as the party most likely to take up AMD on its offer should it ever come to pass.

According to Bloomberg News, the possibility of AMD getting put up for sale is "far-fetched" but entirely plausible, considering that the Sunnyvale company is currently running its day-to-day operations without any managerial directions. In addition, AMD's established portfolio is deemed to be "highly desirable from the standpoint of several potential strategic acquirers based on multiple capabilities, including both its x86 capabilities and its graphics processor expertise".

Needless to say, being able to be in control of its own processor and GPU supply has got to be an extremely appealing option for any computer OEM to consider, especially if it means being able to restrict the supply for AMD Radeon GPUs from competitors in order give itself an unfair competitive advantage. But until we actually get concrete information that AMD is indeed making plans to put itself up for sale, we  have no choice but to call Internet FUD on this one for the time being.

Source: Bloomberg News

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