AMD Refutes Reuters' Claim, Company Not Up For Sale
The Internet is abuzz this evening after Reuters ran an exclusive report claiming Advanced Micro Devices (AMD) had hired J.P. Morgan Chase & Co. to "explore options," including a potential sale of the company. You can imagine the sullen faces on AMD fans far and wide, and also those who favor healthy competition in the market place. There's just one problem -- AMD isn't shopping for a buyer, not for itself or for any of its assets, or so the chip maker says.
Reuters based its report on un-named sources who said a sale of the company wasn't necessarily a priority, but it was definitely looking at available options, such as selling some of its patents to the highest bidder. Given AMD's recent financial struggles, it at least seemed plausible that the company might look to raise cash by selling certain assets. After Reuters ran its report, shares of AMD surged 18 percent before things calmed down. In after hours trading, AMD stock is up 5 percent to $2.09. Two dollars and nine cents. Yes, that's pretty much bargain basement for a big name semiconductor company.
That said, it bears repeating that AMD is rejecting the notion that any of the sales talk is true. However, AMD has not come out and refuted that it's working with J.P. Morgan & Co. Regardless of everything else, AMD is still dealing with significant long-term debt, lease obligations, and an uncertain future as the PC industry shifts to mobile, all of which are reasons it may seek out financial advice and/or outside assistance.
Reuters based its report on un-named sources who said a sale of the company wasn't necessarily a priority, but it was definitely looking at available options, such as selling some of its patents to the highest bidder. Given AMD's recent financial struggles, it at least seemed plausible that the company might look to raise cash by selling certain assets. After Reuters ran its report, shares of AMD surged 18 percent before things calmed down. In after hours trading, AMD stock is up 5 percent to $2.09. Two dollars and nine cents. Yes, that's pretty much bargain basement for a big name semiconductor company.
That said, it bears repeating that AMD is rejecting the notion that any of the sales talk is true. However, AMD has not come out and refuted that it's working with J.P. Morgan & Co. Regardless of everything else, AMD is still dealing with significant long-term debt, lease obligations, and an uncertain future as the PC industry shifts to mobile, all of which are reasons it may seek out financial advice and/or outside assistance.
