Chipmaker AMD seems to be having more and more trouble catching up with archrival Intel and even its latest Phenom II processors have failed to close the significant gap that still exists with the i7 range.
At the time of writing, AMD shares were worth $2.06, that’s a twentieth of their value 3 years ago, a jaw dropping 95 percent fall.
The company is now valued at $1.24 billion and its poor outlook means that the company has been downgraded by most credit ratings firms, making it extremely difficult for the company to get cheap credit for R&D and for its own survival.
This is why AMD had to sell non-core products and create the Foundry Co with Abu Dhabi based Advanced Technology Investment Co. and Mubadala Development co. as it looks to free capital and divest from some ventures.
Back in January 2008, we wrote about about IBM’s potential interest in buying AMD but concluded that it was highly unlikely. Now, given the circumstances, Apple could well be AMD’s new owner by the end of the year and here are five good reasons why:
(1) AMD’s Expertise and portfolio
Apple only needs three things to secure its hardware future. A stable CPU platform, a proper subsystem (chipset, video chip) and a long term relationship with a flash
memory maker. For a mere $1.5 billion, AMD’s acquisition would secure that through its CPU Range, its wholly owned ATI subsidiary and its joint venture with Fujitsu, Spansion.