Despite disappointing third quarter revenues and a steep layoff agenda, AMD is not up for sale, CEO Rory Read has said.
In an email sent to staff obtained by the Verge, the microprocessor firm’s boss responded to rampant rumours of an acquisition, insisting that “ we are not actively pursuing the sale of AMD or any of our significant assets.” Speculation about an outright sale have been swirling in response to the company’s dwindling fortunes, but were boosted by a Reuters report that the company had hired JP Morgan to explore potential solutions to its financial woes.
The news story cited three sources “familiar with the matter” who said that a full-on sale of AMD was not “a priority”, but that perhaps a sale of its patent portfolio would be more realistic. But even that is not the focus, Read said.
“It's full steam ahead with our strategy…we absolutely are on the right path,” he told staff in his internal memo.
"AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly-differentiated technology assets is the right approach to enhance shareholder value,” said a spokesperson in response to the speculation.
AMD has been hit hard by the decline in demand for traditional PCs, as it struggles to find its footing in a market increasingly dominated by mobile computing. Last month, it revealed plans to dump 15 per cent of its employees.