IBM Takeover of AMD Speculations Arise

[nekrosoft13]

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

[AthlonXP1800]

That probably explained why Hector went to a meeting in New York days ago to say that he cant afforded to build New York fab so IBM gave Hector a solution to the problem that a IBM takeover is the answer that AMD can use IBM fab to manufacture CPUs here and IBM probably will sell off 2 AMD fabs in Germany.

[newfiejudd]

Well at least now they might stand a fighting chance at competeing with Intel for the top slot again. I really think we coudl use some competetion in that mark area. Not too mention some stronger competition on teh gPU side agains't Nvidia before they bleed us dry.

[amk21]

If IBM takes over amd, I have no doubt that they would be back in the high end market in two or three years, possible toppling intel

[CaptNKILL]

I don't like this ADAMMBIIT.

(IBM AMD ATI) :p

[ephmrl]

If IBM takes over amd, I have no doubt that they would be back in the high end market in two or three years, possible toppling intel

Why? If intel outcompeted them both before, what would change this time around?

More than likely IBM would strip down AMD quite a bit, and have them refocus on niche products that they could keep margins high, and not have to grapple with anyone in price wars.

Seems awefully unlikely they would take the bate though, they switched their mantra to sw & services nearly exclusively.

[bacon12]

Truck loads of money for R@D for one thing. Amazing what you can do with really deep pockets.

[amk21]

Truck loads of money for R@D for one thing. Amazing what you can do with really deep pockets.

Yep, all amd really needs is some money..... IBM hasn't tried to compete in the desktop processor market, they dominate in the server market....

[nekrosoft13]

if this happens it should be good for competition.

[Madpistol]

if this happens it should be good for competition.

+1. Lets hope.

[jcrox]

if this happens it should be good for competition.

Good for competition yes, but AthlonXP1800's post count would suffer greatly from not being able to post the daily "OMG AMD IS GOING UNDER thread and then what would we do?

[ViN86]

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
holy ****, that's awesome

East Fishkill is close to me here in upstate NY. id love to get a job with IBM/AMD up here. maybe in 3-4 years though, after i finish my PhD.

AMD is planning on building a plant up here in Saratoga county.
http://timesunion.com/AspStories/story.asp?category=BUSINESS&storyID=499248&BCCode=HOME&newsdate=7/13/2006

[ephmrl]

Yep, all amd really needs is some money..... IBM hasn't tried to compete in the desktop processor market, they dominate in the server market....

It seems awefully presumptous that IBM wants to compete for desktop marketshare. Since they've been retreating from it steadly over the last decade, why would they do an about face now?

All I'm saying is don't be surprised that if this acquisition does happen (which I doubt) the likely result will be the AMD resources will get streamlined, with whatever is left tasked to server/HPC space. That's what intel has been trying to crack into for the last decade (with itanic and now terascale) , and more likely that is where IBM would spend their deeper pocket reserves defending (and not a better/faster/cheaper home & gaming processors)...


IBM hasn't tried to compete in the desktop processor market, they dominate in the server market.... I thought Power did try to take on the x86 and lost in the desktop space (arguably thanks to apple, or should motorola take the fall?)

[AthlonXP1800]

Well if IBM dont takeover AMD on time then AMD will filed for bankruptcy.

Fitch downgraded AMD long term credit rating to CCC involve substantial risks, extremely speculative and in default with little prospect for recovery.

It do not seem that AMD have little prospect for recovery when they lost $4bn in 5 quarters and over $5bn in total debts as well as possible no profits this year. AMD shareholders now has the authority power to filing bankruptcy petition.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22514903.htm

http://upload.wikimedia.org/wikipedia/commons/c/c3/Main_Credit_Ratings.png

[andy_nv]

Somehow, I don't see IBM selling/pushing high end ATI cards.

[SH64]

I don't like this ADAMMBIIT.

(IBM AMD ATI) :p
Its IBMDAMMIT!

[K007]

So..IBMAMDATI?

[CaptNKILL]

Its IBMDAMMIT!
:rofl

[Redeemed]

I do agree that if IBM were to acquire AMD/ATi... they'd pull the two out of the consumer market and focus on the server/ corporate market instead. Leaving only Intel and nVidia for us consumers.

Now, the unlikely chance that IBM does acquire AMD/ATi and they indeed do compete in the consumer and corporate markets... that'd be awesome. With IBM's immense amount of resources I'm certain within' a short period of time they'd be pumping out some crazy performing products. The competition would be rather hot in other words. :p

But, honestly, I'd prefer a company like Samsung purchase AMD. They're rather successfull in regards to electronics as is, and thier name is widely known- while AMD's and even ATi's, is not. That, in my opinion, would be a *very* good thing for AMD. And, more than likely, Samsung would compete in the consumer markets... meaning things would be like they currently are (AMD vs. Intel, ATi vs. nVidia) only AMD/ATi would have significantly more resources available to them.

[ephmrl]

But, honestly, I'd prefer a company like Samsung purchase AMD.

Sure samsung is a juggernaut, but could they turn amd around w/o exporting the company itself (& whoever would follow) to their home town? I dunno.

Now Chung Ju-yung could have travelled to austin & kicked their ass straight into high gear (in his time) I bet ;).

[Treason]

Anyone remember nVidia and IBM in a joint venture three to four years ago? About some fab in New York? I don't think it ended very well.

[amk21]

I do agree that if IBM were to acquire AMD/ATi... they'd pull the two out of the consumer market and focus on the server/ corporate market instead. Leaving only Intel and nVidia for us consumers.

Now, the unlikely chance that IBM does acquire AMD/ATi and they indeed do compete in the consumer and corporate markets... that'd be awesome. With IBM's immense amount of resources I'm certain within' a short period of time they'd be pumping out some crazy performing products. The competition would be rather hot in other words. :p

But, honestly, I'd prefer a company like Samsung purchase AMD. They're rather successfull in regards to electronics as is, and thier name is widely known- while AMD's and even ATi's, is not. That, in my opinion, would be a *very* good thing for AMD. And, more than likely, Samsung would compete in the consumer markets... meaning things would be like they currently are (AMD vs. Intel, ATi vs. nVidia) only AMD/ATi would have significantly more resources available to them.

Ya samsung would be a better choice for amd. But I still do believe that a takeover is immenent ofr amd, within the next year... If it doesnt appen, I would expect them to file for bankruptcy..

[ephmrl]

CSI should ship with the four-core Tukwila chip in 2008.
[...]
"Will Intel finally catch up with arch-rival IBM's POWER6? This is probably one of Intel's better chances since IBM took the lead with the Power5. It looks like a single Tukwila will probably have about the same performance on major benchmarks as a single Power6."

See, its all about the ultra high end with ibm (if they really decide bailing out amd would help meet their ends)...

http://www.theregister.co.uk/2008/01/30/intel_itanium_quickpath/

[Dragunov]

So..IBMAMDATI?

It's an acronym, try to make a word with this letters given :D

[AirRaid]

IBM / AMD / ATI would be a nearly unstoppable force in compute / CPU and visualization / graphics.

It might force Intel and Nvidia to merge.

I don't think either is going to happen, yet, AMD *did* buy ATI
and Microsoft IS trying hard to get Yahoo, so you never know...