AMD Investment Talks Break Down
Samuel Wan / 9 years ago
Remember that rumour about AMD getting a major investment from Silver Lake? It turns out now that talks between the two parties have broken down and are going nowhere right now. According to the source, the talks broke down after disagreements on price and strategy could not be resolved. AMD is still looking at other options though in order to bring in some much-needed cash flow tide them over 2016; Silver Lake was rumoured to take over 20% of the firm.
AMD has had somewhat of a bad month so far. Rumoured reports about a Microsoft acquisition did not pan out, driving share prices back down. Some notable members have also left, with CPU wiz Jim Keller as well as other executives taking their leave. Combined with breaking off the graphics lineup into a separate division; AMD is either cutting costs heavily or undergoing a major restructuring.
Given the breakdown in talks, it looks like either Silver Lake wanted too much control in return for their cash or the current leadership was unwilling to give up any power. Despite the launch of the new Fury and Nano GPUs, AMD is set for record low revenues and the firm is in serious need of cash. Hopefully, AMD will be able to find an investor till the next generation of GPUs and CPUs kick in.
Thank you Bloomberg for providing us with this information
