AMD hires JP Morgan to seek options, outright sale possible: Reuters
AMD has hired JP Morgan Chase & Co to explore options for the troubled chipmaker. One of the possible outcomes could be an outright sale but that is not the priority, Reuters reports. Another possibility could be the sale of its patent portfolio. AMD is slowly becoming irrelevant as it failed to latch on to the mobile growth story with the proliferation of smartphones and tablets, which have sidelined traditional PCs and today account for more shipments globally than PCs.
Most of these smartphones and tablets run on chipset architectures designed by rival ARM that offer better power management and generate lesser heat while occupying a smaller footprint. Even Microsoft is now supporting ARM chipsets for its Windows 8 platform, adding to AMD’s woes.
The chipmaker has seen its stock value drop by 60 percent this year and is valued at $1.4 billion. However, according to the report, it also has long-term debt and capital lease obligations of about $2 billion. It certainly looks like game over.