Rumor: Dell might buy AMD

AMD shares were up 5% yesterday based on a rumor that the company could be up for sale, according to ZDnet. The possibility that AMD would be available for purchase, and that Dell may be the company to make the acquisition, was started by Barrow’s, who said,

I would say the recent departures of senior executives — COO Robert Rivet last week, CEO Dirk Meyer back in January — is still unexplained and can lead to all kinds of speculation.

There’s not a lot of color on the rumor at this point. Is Dell considering making a more integrated kind of product line? Talk about a change in strategy.

While this really is nothing but a rumor (Barrow’s calls it “chatter” and “a far-fetched possibility”), the fact that upper management at AMD has been jumping ship since the beginning of the year has analysts looking at the possibility of new leadership for the company.

According to ZDnet, Dell would have to pay upwards of $6 billion for AMD. It’s no small fee, but Dell would profit tremendously from such a partnership. Being a leader in direct sales and build to order consumer PCs, the acquisition of the second largest chip maker in the world can only help tighten up their already competent third-party value chain.

With deals like Intel buying security firm McAfee for a similarly hefty price, it seems that large shifts in company vision are looked highly upon by the market. The fact that investors were happy about a possible merger of the two companies only strengthens the possibility that AMD will be looking for new management sometime in the near future.

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It makes more sense for apple to buy AMD than Dell. Apple gets a captive x86 supplier for her Mac line. AMD is an insurance policy if there is any future problem occurring with ARM (Maybe, a hostile takeover of ARM? I am just thinking aloud.) And APPLE GETS ATI. Now she can control her OWN GRAPHICS DESTINY. Just think, in April, Apple comes with A5 tablet, dual core CPU with new PowerVR, and in August there are a few tablets with quad core CPUs with Nvidia graphics doing end run to A5 with sizzling graphics.

AMD is one hot commodity!!!

Samir Shah said,
It makes more sense for apple to buy AMD than Dell. Apple gets a captive x86 supplier for her Mac line. AMD is an insurance policy if there is any future problem occurring with ARM (Maybe, a hostile takeover of ARM? I am just thinking aloud.) And APPLE GETS ATI. Now she can control her OWN GRAPHICS DESTINY. Just think, in April, Apple comes with A5 tablet, dual core CPU with new PowerVR, and in August there are a few tablets with quad core CPUs with Nvidia graphics doing end run to A5 with sizzling graphics.

AMD is one hot commodity!!!

+1
Thats exactly what AMD needs... someone like Steve Jobs. I can see it surpassing intel then

In further news rumor. AMD will follow Dell down the path of piece of crap computing and totally worthless tech support.

Wow from Intel only to AMD-inside only perhaps? This would be drastic turn for Dell. Mind you, I always liked Dell when they were Intel exclusive - but those were the 90s - Dell isn't the same company they used to be. But this is my own opinion.

Apple -> OS X
HP -> WebOS
Dell -> Nothing

it sort of makes sense, but I don't see where Dell would go with it... it's the software side of things that are getting people to look at you now, not the commodity hardware.

Won't happen, just like intel won't buy AMD. Not allowed. If anyone would be bringing out the cheques would maybe be GlobalFoundries reintegrating the company or something.

I worked for Dell, It could be a good profiting deal, but they need to work on stabilizing their massive employee turnovers down here main HQ.

DrOmango said,
I worked for Dell, It could be a good profiting deal, but they need to work on stabilizing their massive employee turnovers down here main HQ.

Dell really needs to build less ****ty computers.

I doubt that Dell would end up winning if there was a buyout, which is unlikely. IBM would be the best candidate, even a IBM AMD merger scenario would be something to see, as it could get them a foothold the x86-64 market.

been said over and over.

they won't be able to produce processors , they need x86 licence from intel

AMD license would be void once they get bought

I still don't trust them as a company, as at work I'm dealing with about half a dozen Dell systems with blistering capacitors - one of the systems fried a £400 CCTV card as a result. Still, this sounds like a good business move as I'd rather see AMD succeed over Intel.

I have bought two dell desktops with Intel processors and have zero issues and just bought a new Dell laptop with an AMD processor and it runs just as good. I prefer AMD over Intel anyday.

I'm not too savvy on processors. Could someone either give me some quick info on or direct me to a good website to read about them on?

I'm interested in learning why some of you are so against AMD, and say that they would drop Dell if they only used AMD CPUs.

I have intel CPUs on all my computers, so I'm just wondering.

MidTxWRX said,
I'm not too savvy on processors. Could someone either give me some quick info on or direct me to a good website to read about them on?

I'm interested in learning why some of you are so against AMD, and say that they would drop Dell if they only used AMD CPUs.

I have intel CPUs on all my computers, so I'm just wondering.

Many of the posts would be from businesses using large amounts of computers and servers. Chipsets and driver issues for servers would be one thing, but Dell would have to support these things for 4 to 6 years unlike even Intel is wanting to do. Unless AMD is going into the tablet market, I don't really know why Dell, or anyone, would care. In 4 years a laptop will most likely be the device that you put your tablet into for a keyboard/protective case/extra ports type of thing.

DrScouse said,
Noo.. dont do it, Dell is a load of old cr@p!

That I DO agree with! Had 2 Dell laptops, both needed 4+ repairs in their first year, will NEVER buy one again!

I work at a computer retailer, and just like the comments here, it amazes me at the amount of blatantly bias comments against AMD products... Their new lineups over the last 8 months are actually fantastic products, even in terms of heat, and there's nothing wrong with them. People that keep saying "AMD sucks" or "I'll never buy AMD cause they're crap" are just stupid and uneducated about what AMD actually is TODAY. Yes, AMD has had problems in the past, but guess what, so has Intel! AMD has put out a solid product over the last 2 years, and I've owned systems from both, and guess what, I've had more problems with the Intel systems than AMD. People need to grow up and start doing their research based on first-party facts, and not on here-say from other people just spreading BS cause they don't know any better.

Dell sucks. Screw them, and all of their proprietary BS - if they can fit an extra notch, they'll do it. Never owned a dell and NEVER will.

negroplasty said,
Dell sucks. Screw them, and all of their proprietary BS - if they can fit an extra notch, they'll do it. Never owned a dell and NEVER will.

They are not any more proprietary as other companies. I just popped open an eMachines recently and their power supply isn't off-the-shelf replaceable. I'd have to go to the OEM to get a replacement. Luckily it's a part they use in a lot of models but that isn't always the case. At least with Dell I know I'll find the part somewhere usually.

negroplasty said,
Dell sucks. Screw them, and all of their proprietary BS - if they can fit an extra notch, they'll do it. Never owned a dell and NEVER will.

I've owned dozens over the years. It's unfortunate what a garbage company Dell has become. I'll never ow another and am actively transitioning the company to better hardware.

Well that sucks. I liked ATI when they weren't AMD since they were based in Toronto, but now they are AMD, and if they go Dell that will just suck. Who knows if they will even keep that site open.

That statement is wildy speculative and the fact that the market responds to this kind of thing is actually frightening.

bob_c_b said,
That statement is wildy speculative and the fact that the market responds to this kind of thing is actually frightening.

Also, taking a look at Dell's last public filing, they appear to have about $3 billion in cash on hand, not enough to pay for AMD without taking on some huge debt. The more you apply even a little thought, the more unlikely this is.

I will never EVER buy a Dell. I have purchased AMD proccessors and would again. We have Dells here that are total JUNK. I hope this doesn't go through...

bguy_1986 said,
I will never EVER buy a Dell. I have purchased AMD proccessors and would again. We have Dells here that are total JUNK. I hope this doesn't go through...

I wonder if it is only related to the models you have worked with. I'll admit there have been models that were complete crap but the primary reason I select Dell over other vendors is the consistency I get from Dell. Usually if the a Dell model performs well 95%+ of those systems have no issue, the inverse is also true when the model is crap.

bguy_1986 said,
I will never EVER buy a Dell. I have purchased AMD proccessors and would again. We have Dells here that are total JUNK. I hope this doesn't go through...
I used to think this too, then I got one of the new XPS laptops, they've definitely changed their ways!

jr.flynn said,

I wonder if it is only related to the models you have worked with. I'll admit there have been models that were complete crap but the primary reason I select Dell over other vendors is the consistency I get from Dell. Usually if the a Dell model performs well 95%+ of those systems have no issue, the inverse is also true when the model is crap.

it could be... We've been getting the ultra small optiplex's. Fans go out like crazy and/or say there is a fan failure when there really isn't. (probably because the fan isn't spinning as fast as it's supposed to be when first booting up).

My father purchased a refurbished laptop... The cd-rom did not work. (I'm not a big fan of buying refurbished either...)
I'm more of an HP guy tho... So probably a little biased.

+1 all all my systems at work run on Intel, There's no way I'd switch the CAD/Server systems I support to AMD, standard laptops maybe but I wouldn't like it.

styxrtp said,

They can't buy AMD, the AMD+ATI+NVidia would create a monopoly.

Holding a dominant position or a monopoly in the market is not illegal in itself, however certain categories of behavior can, when a business is dominant, be considered abusive and therefore be met with legal sanctions.

yowan said,
Nvidia should buy it instead

Oracle. They've bought hardware and software makers and providers. Why not AMD?

As someone who has personally owned 5+ dell systems and has been responsible for the purchase of thousands of Dell systems at my job, this could turn out very bad for Dell. Only if they stopped using Intel processors though. I would never again recommend PowerEdge servers, Precision Workstations or Latitude Laptops if the only processor choice was an AMD chip. I would switch to a manufactorer that supplies both and allows me to pick which one I deem appropriate. Any cost savings by Dell would surely NOT be passed on to the customer.

jr.flynn said,
As someone who has personally owned 5+ dell systems and has been responsible for the purchase of thousands of Dell systems at my job, this could turn out very bad for Dell. Only if they stopped using Intel processors though. I would never again recommend PowerEdge servers, Precision Workstations or Latitude Laptops if the only processor choice was an AMD chip. I would switch to a manufactorer that supplies both and allows me to pick which one I deem appropriate. Any cost savings by Dell would surely NOT be passed on to the customer.

That's what I was thinking too. I don't think Intel would look too kindly on them owning AMD and might make it difficult for them to purchase Intel chips. And plus it would be silly for Dell to own a CPU / GPU manufacturer and sell computers with competing chips.

/- Razorfold said,

That's what I was thinking too. I don't think Intel would look too kindly on them owning AMD and might make it difficult for them to purchase Intel chips. And plus it would be silly for Dell to own a CPU / GPU manufacturer and sell computers with competing chips.

Especially with Intel making chips for MS devices, and Win8's focus on tablets/phones.

This would be a bad move by Dell. There are too interested in Intel to make the transitions. Further, it would hurt them by allowing them only to offer one product. It is very doubtful that Intel would sell directly to Dell if they owned AMD. To use Intel chips, they would not have the deal that they have now. It would get very costly.

As for Intel, and Win8 on tablets and phones. It will happen. It, however, will not happen with x86. The x86 architecture has too much legacy and does not meet the power requirements necessary for small devices. Yes, even Atom is very limited unless you want a Netbook or Nettop. The market is moving to ARM. Intel of course has a license to produce ARM hardware through DEC I believe, though they didn't have ARM7 tech and they did sell off their main ARM manufacturing IP to Xscale.

They should buy AMD and set it up so that they dont release processors again and cut a nice deal with Intel. Use AMD just for the R&D and whatever other beneficial departments/branding they have. I like that idea.