Silver Lake's Talks with AMD for 25% Stake Have Been Stalled

[HKZeroFive]

Advanced Micro Devices Inc., a struggling competitor to Intel Corp., was in talks to sell about a 25 percent stake to private-equity firm Silver Lake Management before the negotiations stalled, people with knowledge of the matter said.

The two sides, which met over the summer, have put the discussions on hold after failing to agree on a price and strategy, said one of the people, who asked not to be identified because the information is private. AMD is also considering other strategic options, another person said.

AMD is losing market share to Intel in processors for personal computers and servers. It’s trying to branch out into custom chips in an initiative that has so far failed to bring in enough revenue to make up for the orders it’s losing in a declining PC market. The company currently has a market value of about $1.3 billion.

A spokesman for Sunnyvale, California-based AMD declined to comment, as did a representative for Silver Lake.

Although I feel personally that both parties won't reach an agreement and the talks will likely go nowhere, this could be huge for AMD if they actually do. But this stall in talks probably says quite a lot of about the situation currently, so it's not looking too good.

For those who don't know, the company 'Silver Lake' did the buyout of Dell in 2013, which was arguably one of the biggest tech buyouts ever. Also, they bought Skype from EBay in 2009 IIRC, and later sold it to Microsoft.

Although it seems unlikely, but if Silver Lake acquires a 25% stake from AMD, it could really change some things.

Source: http://www.bloomberg.com/news/articles/2015-09-28/amd-said-to-have-held-stalled-investment-talks-with-silver-lake

[soaringchicken]

hmmmmmmmmm

[QueenDemetria]

Silver Lake sounds like an Intel processor.

 

(Skylake, Kaby Lake, Cannonlake, Silver Lake, see it fits)

[TheKDub]

Silver Lake sounds like an Intel processor.

 

(Skylake, Kaby Lake, Cannonlake, Silver Lake, see it fits)

 

Inb4 silver lake is intel

[AresKrieger]

A buyout or sale of a large portion of amd is very likely at this point in time due to their debt issues, so I'm not that surprised.

[QueenDemetria]

Inb4 silver lake is intel

Plot twist of the century lol

[Sharkyx1]

25% would only add up to some 300m$ wouldn't it? At best?

It could help them make it a bit longer but it's not gonna save them on its own

[wpirobotbuilder]

Silver Lake is one of the groups that helped Dell go private again, and that was a good success story for both sides. Maybe we'll see good news out of these talks.

[Prysin]

25% would only add up to some 300m$ wouldn't it? At best?

It could help them make it a bit longer but it's not gonna save them on its own

300mill is roughly the "average" cost of developing a new CPU architecture these days....

funny that

[Suika]

25% would only add up to some 300m$ wouldn't it? At best?

You could say, but I'd imagine something like access to the x84_64 instruction set would be difficult to value. Intel's not going to share it, so maybe snatching part of AMD can grant access.

[pixeldensity]

You could say, but I'd imagine something like access to the x84_64 instruction set would be difficult to value. Intel's not going to share it, so maybe snatching part of AMD can grant access.

would a firm like silver lake even have any use for the x84_64, it not like they will be making any cpus.

[carolkarine]

AMD's worth 1.3 billion. what a time to be alive.

[MrRavens]

Live AMD! Liiiiiive! D;

[Agent181]

das cooo