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AMD considering to split itself in two? (updated)

Posted on Saturday, June 20 2015 @ 10:34:58 CEST by


AMD logo
UPDATE - June 22, 2015 @ 11:59 CEST AMD spokeswoman Sarah Youngbauer issued a statement denying the Reuters report. She wrote AMD remains committed to the long-term strategy that was presented in May and notes the firm has not hired an outside consulting agency to explore a spin-off or break up.
"AMD provided official confirmation that we have not hired an outside agency to explore spinning-off/splitting the company... We remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day, which encompasses all parts of the business."



Three anonymous sources told Reuters that AMD is in the initial stages of reviewing whether to split itself in two or spin off a business. The chip designer reportedly hired a consulting firm to review its options and spin the numbers on how splitting or a spin-off would work. The people familiar with the matter claim the deliberations are preliminary and that no decision has been made.

The article mentions one of the options is to split AMD's graphics and licensing business from its server business. Similar moves have been explored in the past but weren't pursued.
AMD had explored such a move in the past and decided against it, the people said. Su, however, who took over as CEO last October, judged that there is merit for the company to at least consider such a possibility again, the people added. There is no certainty that a split or spin-off will occur, the people cautioned.

An AMD spokeswoman said no such project was in the works at this time and reiterated the company's commitment to the long-term strategy it laid out in May at its analyst meeting.




 



 

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