Industry Expert Blogs
Is AMD for Sale?SemiWiki - Daniel NenniSep. 06, 2016 |
AMD has been artificially pumping up their stock of late so the question I have is; why? What is with the short term strategy? The only answer that I deem noteworthy is that AMD is trying to get acquired and there is a strong technical case to support that. Also note that Lisa Su is currently the largest single AMD stock holder which may be an added incentive to sell the company.
During the last investor call, AMD CEO proudly said, "We achieved profitability this quarter, for the first time since 2014." Unfortunately AMD could not have achieved that without selling a majority interest (85%) in their assembly and test operations to another firm to raise cash. As a result they recorded a significant profit on this sale ($127M after provisions for taxes). Without this one-time operations spin-out, the net operating results would have been a significant loss.