Looks like the rumors about AMD being in talks with a private equity firm were true, but unfortunately the two parties have failed to reach a deal. Bloomberg heard from people in the know that AMD and Silver Lake Management met over the summer, AMD wanted to sell a 25 percent stake to Silver Lake but the two sides couldn't agree on a price and strategy.
AMD is reportedly considering other strategic options, but Bloomberg was unable to dig up more information. The chip designer needs to raise cash as it needs more money to keep itself afloat until Zen can hopefully strenghten the firm's financial position. AMD CFO Devinder Kumar says the company needs a minimum of $500 million at all times, a figure that got downgraded after the latest rounds of layoffs. At the end of the second quarter, AMD had $829 million in cash and equivalents and $2.27 billion long-term debt.
Advanced Micro Devices Inc., a struggling competitor to Intel Corp., was in talks to sell about a 25 percent stake to private-equity firm Silver Lake Management before the negotiations stalled, people with knowledge of the matter said.
The two sides, which met over the summer, have put the discussions on hold after failing to agree on a price and strategy, said one of the people, who asked not to be identified because the information is private. AMD is also considering other strategic options, another person said.