IBM still not buying AMD
Written by admin on January 28th, 2008 in gadgets.
After years of close partnership work and multitudes of buy-out rumors, it appears that IBM is still not buying AMD.
Rumors surfaced recently that led to an uptick in AMD stock, but it sounds like the purchase would not only be unlikely, but also would be detrimental to IBM share prices. It sort of reminds me of doing something like purchasing ATI. You buy a company that is not the leader but a competitor, because you see some spark of value, but you end up not being able to capitalize on it.
AMD has not really had a stellar benefit from purchasing ATI, and perhaps that is one reason why IBM would not want to purchase the combined lot. Most of these rumors have come about because IBM really benefits from all the work that AMD does in producing chips on leading edge processes, even if they are a step behind Intel at this point.
They have always had a close partnership, and hopefully they will keep that going, as I think AMD can leverage IBM’s cash to keep going. If AMD share prices drop madly, it may be IBM that would someday purchase the remnants of a broken company, but that doesn’t seem to be the case, with AMD being mentioned as the latest Wall Street “darling.”
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