Qualcomm Planning to Acquire AMD?
Reuters recently reported that AMD is mulling its options of breaking the company up or spinning off some of its sectors.Although AMD later denied Reuters’ report. Now, according to a report by Seeking Alpha, Qualcomm may be gearing up to buy AMD or at least a sector of the company.
We all know that AMD, once the technology giant, is now straddling and if all this continues the company might not even stand a fighting chance in the future. With each day passing, NVIDIA releases news and advanced graphics cards and Intel keeps on releasing powerful processors efficiently.
With all of this going on, AMD is left struggling and there are only two case scenarios in which the AMD can at least stay in the game. First would be if Qualcomm buys AMD, which would not cost much as it will only outlay $3 billion in total from Qualcomm which is only about one-fifth of Qualcomm’s cash status.
Second option is if the company buys the server sector of AMD. In both cases, this could help out both companies. AMD cannot survive alone in the cut throat market and Qualcomm will have a much powerful chip with some amazing graphics. Qualcomm CEO Steve Mollenkopf said in a recent conference that they are looking out for expanding their server business.
We have recently announced last November that we are going to move to the datacenter. We knew it was going to be a long play, it is something that we are going to have to grow in order to be successful and new capabilities that we are going to have but things that play to our core competency, but allow us to grow into new markets and can we go into them using M&A? It’s an interesting chessboard right now.
If this rumor turns out to be true, users will enjoy better graphics on their phones and would be able to play powerful games that require APUs for integrated graphics. What do you think about this acquisition? Let us know in the comments section.