Report claims AMD may consider sale as CEO says it's not happening

13th Nov 2012 | 23:40

Report claims AMD may consider sale as CEO says it's not happening

CEO assures employees that all is well

Update: A leaked internal memo sent to staff by CEO Rory Read strenuously denied that AMD plans to sell any part of the company.

Read referred to a "major media outlet" that produced a speculative piece as he personally reinforced this message: "we are not actively pursuing the sale of AMD or any of our significant assets.

"It's full steam ahead with our strategy...we are absolutely on the right path."

Original story continues below

Troubled chip manufacturer AMD has reportedly called in the services of investment bank J.P. Morgan to examine its options going forward.

The company, which has struggled with the rapid industry transition from PC to mobile, has seen its share price fall 60 per cent this year and last month announced it was chopping 15 per cent of its staff.

According to sources speaking with Reuters, AMD would consider selling up, although the Silicon Valley-based company claimed it is not pushing for this eventuality.

"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," spokesperson Drew Prairie wrote in an emailed statement to Reuters.

Silver lining

The report said AMD may also seek to sell off elements of its patent portfolio in order to stay afloat while it seeks new markets for its products.

Despite the recent struggles in the PC market, AMD still does good business in the games console market. This and the "growing focus on embedded chips" could be "silver linings" for the company, Retuers sources said.

The article mentioned tech big hitters like Apple, Samsung, Google, Microsoft, Intel and Facebook as potential suitors should AMD go under the hammer.

TechRadar asked AMD for comment and will update this story if and when the company responds.

Via Reuters, The Verge

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