AMD weighing a business break-up or spin-off

AMD logoUpdated June 21, 1720 EST (2220 BST): AMD Spokesperson Sarah Youngbauer issued a statement over the weekend denying Reuters' report. She wrote, "AMD provided official confirmation that we have not hired an outside agency to explore spinning-off/splitting the company... We remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day, which encompasses all parts of the business."

Original story

On Friday afternoon, Reuters reported that AMD is weighing its options, and those options include breaking the company up or spinning off some sectors into independent companies. Three anonymous sources who are “familiar with the matter" told the newswire that AMD is just looking at a break up preliminarily, noting that the company hasn’t made any decisions to go forward with the move.

Reuters' sources had said that AMD has hired a consulting firm, "to help it review its options and draw up scenarios on how a break-up or spin-off would work." AMD has struggled over the last decade to keep up with its hulking competitor, Intel. The company’s most recent quarterly financial results in April were down 26 percent year on year, with revenue of $1.03 billion and increased operating losses. In addition, the company announced that it would be leaving the microserver market, essentially scrapping its 2012 acquisition of SeaMicro. Since stepping into the role, AMD’s new CEO Lisa Su has been determined "to consider every possible option to turn the company around,” according to Reuters, including breaking up the company.

"One option under consideration is separating AMD's graphics and licensing business from its server business, which sells processors that power data centers,” an anonymous source said, while adding that nothing has been decided and the company could remain together after all.

A spinoff wouldn’t be a first for AMD. In 2009, the company spun off its semiconductor fabrication plants to create GlobalFoundries. In 2012, AMD shed its remaining 34.2 percent share in GlobalFoundries in order to give the company more flexibility in choosing its semiconductor manufacturers. At the time, AMD said the deal would cost it $703 million.

Source: Ars Technica

Tags: AMD

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
    123
45678910
11121314151617
18192021222324
25262728293031




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)