Earlier this month we announced that Silver Lake was about to acquire 20 percent of AMD, now AMD’s internal sources leaked that information was correct, but ultimately there was an agreement between the two companies. A worker of AMD claims that the Silver Lake private equity made an offer to buy 25 percent of shares of the company, negotiations that took place during this summer, but finally suspended after failing to agree on a price and strategy.
AMD is not sold to Silver Lake
“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.”
These “other strategic options” can pass through other rumors we’ve been aware, the wink of Microsoft or Samsung itself to take over AMD. From Microsoft rumors indicate that they are also interested in the AMD, while rumors of Samsung are of earlier this year, which indicated that Samsung was interested in buying AMD to strengthen its presence at Intel and Qualcomm.
Shares of AMD are down 38 percent this year, compared with a 16 percent slide in the Philadelphia Stock Exchange Semiconductor Index.