AMD is not going through one of its best as they are facing financial issues from past 2 years, but now it seems like things are going to change. Because Silver Lake, a team of private capital is ready to buy the 20 percent of the shares of AMD. Independent industry sources say that Michael Dell, the brains of Silver Lake, will use their piles of cash to buy from AMD.
Silver Lake is about to acquire 20% of AMD
Silver Lake is itself as a global leader in technology investment, since it has holdings of major brands in the industry as Alibaba, Dell, Avago, GoDaddy, Motorola Solutions, Opera Solutions and many more. Now ready to capture a significant portion of AMD that would help the company become more competitive in the CPU and GPU market, while the market is coming APUs will very profitable thanks to the success of the PlayStation 4 and Xbox One.
This could be a great opportunity for AMD, as it will get the money it desperately needs. AMD shares are trading at $ 1.88 with a market capitalization of the company of only 1.418 million, so Silver Lake will pay 20 percent of that amount. To give us an idea of the delicate situation of the company, AMD paid 5,400 million dollars in 2006 to buy ATI.
Undoubtedly the purchase of 20% of AMD is the best that could happen to both the brand and industry, and clearest example, we have with Intel that year after year they released new CPUs with enhanced performance 2 to 5 percent, and if that is transferred to the graphics market then it would be bad news for NVIDIA.