AMD Denies Report The Company Is For Sale
Advanced Micro Devices (AMD) denied reports that the company's board of directors are considering selling the company or any of its assets.
Reuters reported on Tuesday afternoon that AMD has hired JPMorgan Chase & Co to explore business options, including a potential sale. Reuters cited unnamed sources saying that although sale of the company was not the main option, choises could include selling its patents.
"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," the company said in a statement. "AMD is not actively pursuing a sale of the company or significant assets at this time."
AMD faces competition from companies designing low-cost and power-efficient chips for mobile devices based on ARM Holdings' technology. AMD remains dependant on the PC industry and seems to have no cash to offer strong mobile offerings. Rival Intel has also failed to be competitive in the mobile chip market so far, although it has potential to fund research on new products to catch up.
AMD said last month it would slash 15 percent of its workforce, while devoting more resources to areas outside of its traditional PC business, including communications, industrial and gaming applications.
AMD also recently announced it has licensed technology from ARM and will use it to build low-power chips for servers. But those products aren't expected to launch until 2014.
"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," the company said in a statement. "AMD is not actively pursuing a sale of the company or significant assets at this time."
AMD faces competition from companies designing low-cost and power-efficient chips for mobile devices based on ARM Holdings' technology. AMD remains dependant on the PC industry and seems to have no cash to offer strong mobile offerings. Rival Intel has also failed to be competitive in the mobile chip market so far, although it has potential to fund research on new products to catch up.
AMD said last month it would slash 15 percent of its workforce, while devoting more resources to areas outside of its traditional PC business, including communications, industrial and gaming applications.
AMD also recently announced it has licensed technology from ARM and will use it to build low-power chips for servers. But those products aren't expected to launch until 2014.