AMD has refuted reports suggesting it is exploring a potential sale of the company.
"AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly differentiated technology assets is the right approach to enhance shareholder value," Drew Prairie, an AMD spokesperson, told CRN in an emailed statement. "AMD is not actively pursuing a sale of the company or significant assets at this time."
Rumors of a sale started to swirl Tuesday afternoon, prompted by a report from Reuters that suggested AMD had on-boarded JP Morgan Chase & Co. to start exploring its strategic options, one of which included a sale of the company. Reuters cited three anonymous sources said to be "familiar with the situation."
[Related: AMD Eyes Tablet Market With New Z-60 APUs]
Microsoft, Google, Samsung, Facebook and even rival chip maker Intel have been suggested by Wall Street analysts as potential buyers of AMD's chip business, Reuters noted.
AMD, Sunnyvale, Calif., has struggled financially over the past few quarters, as demand for its chips that power notebook and desktop PCs has been weaker than usual. This drop in demand stems from an overall sluggish PC market, which saw worldwide shipments plummet 8.3 percent in the third quarter, according to research firm Gartner.
AMD said last month that it plans to cut approximately 15 percent of its global workforce -- or nearly 1,770 jobs -- in an attempt to slash operational costs. The chip maker said the layoffs would take place largely during the fourth quarter of this year and are expected to yield nearly $20 million in savings.
Looking ahead, AMD CEO Rory Read said last month the company is placing a new focus on fast-growing market segments, such as the data center and mobility, rather than bank its future solely on PCs. AMD made good on that promise in October, when it unveiled a partnership with U.K.-based chip licensor ARM to collaborate on new 64-bit server chips. The chips will blend AMD's traditional Opteron processors with ARM's low-power chip architectures, traditionally found in mobile devices such as smartphones and tablets. AMD and ARM said the new chips are expected to launch in 2014.
PUBLISHED NOV. 14, 2012