Microsoft is Apparently Interested in Acquiring AMD

[gebraset]

According to reports familiar with the matter, Microsoft approached AMD several months ago in an attempt to discuss acquisition details. While no relevant information concerning the talks has been released at this time, the idea of Microsoft acquiring AMD is something that may prove beneficial for both companies, especially AMD. It comes as no surprise that AMD is currently in a tough spot, with the GPU market being dominated by NVIDIA and the CPU market being led by Intel. Even the research and development budget for AMD was at a 10 year low just three months ago, and the company itself has a valuation that is three times lower than what AMD paid for ATI Technologies in 2006. Fortunately, Microsoft utilizes an AMD system-on-chip in its Xbox One, and based on current life-to-date sales of the gaming console, Microsoft has already paid AMD $1.26 billion for the chips. If the acquisition of AMD by Microsoft did actually happen, the software giant could save itself substantial money when it comes to its latest Xbox console and could boost the technological advances of products produced by AMD.

The news of Microsoft approaching AMD for a possible acquisition deal comes just days after it was reported that AMD could spin off into multiple businesses to make itself more competitive. AMD dismissed these rumors for the most part, however, with an AMD spokesperson addressing the news head-on.

Source: KitGuru

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[AkakmanH]

No, no, no, no, no!!!!!!!!!!!!!! Microsoft is too big to acquire a CPU manufacturer. The minute MS grabs up AMD, there will be a big proprietary shift from Intel to AMD by MS. Look how long it took for MS to publish their Windows internals secrets. And, I am sure there are still internal calls that are known only to MS. I understand that AMD is struggling to compete with Intel and they need a fresh influx of cash for R&D, but, MS is not the answer.