maf3000
December 16, 2007, 11:06 PM
Opinion - What would it cost to purchase a major CPU and GPU manufacturer? In the case of AMD today, about $4.73 billion--which could be the bargain of the decade if AMD executives could make their vision of becoming the leading computer and CE platform company a reality. And the truth is, all it might take to turn AMD around is an investment of R&D resources. If it was done right, buying AMD could prove to be a master stroke.
We here at TG Daily were left a bit speechless and scratching our heads after AMD concluded its analyst conference call yesterday. We were not really surprised that AMD admitted to screwing up the introduction of its quad-core CPU, as there wasn’t really another option for them to explain the recent events. What we were surprised by however, was a somewhat inconsistent message to analysts about how the company would perform in the current quarter, and their promise to return to profitability in the second half of next year. Wall Street apparently feels the same way as AMD's stock price continues its decline even today.
So, when we stepped back and looked at AMD's past 12 months, its multi-delayed next-generation CPU debacles, and the unclear guidance on future financial points, it made us wonder: Has AMD become a very attractive acquisition target? Think about it: A company could come in right now and buy AMD for less than what AMD paid for ATI. In so doing, they would become a major player in the CPU, GPU and consumer electronics chip arena in a snap. Sound possible?
The TG Daily editors have given it some thought and here's what has come up.
http://www.tgdaily.com/content/view/35289/118/
The article doesn't say it but if AMD is bought out it will terminate the x86 cross-licenses with Intel.
6.2. Termination for Cause.
---------------------
(a) A party may terminate the other party's rights and licenses
hereunder upon notice if the other party hereto commits a
material breach of this Agreement and does not correct such
breach within sixty (60) days after receiving written notice
complaining thereof. In the event of such termination, the
rights and licenses granted to the defaulting party shall
terminate, but the rights and licenses granted to the party
not in default shall survive such termination of this
Agreement subject to its continued compliance with the terms
and conditions of this Agreement.
(b) A party hereto may terminate this Agreement upon sixty (60)
days written notice of termination to the other party given at
any time upon or after:
(1) the filing by the other party of a petition in
bankruptcy or insolvency;
(2) any adjudication that the other party is bankrupt or
insolvent;
(3) the filing by the other party of any petition or answer
seeking reorganization, readjustment or arrangement of
its business under any law relating to bankruptcy or
insolvency;
(4) the appointment of a receiver for all or substantially
all of the property of the other party;
(5) the making by the other party of any assignment for the
benefit of creditors;
(6) the institution of any proceedings for the liquidation
or winding up of the other party's business or for the
termination of its corporate charter;
http://contracts.corporate.findlaw.com/agreements/amd/intel.license.2001.01.01.html
We here at TG Daily were left a bit speechless and scratching our heads after AMD concluded its analyst conference call yesterday. We were not really surprised that AMD admitted to screwing up the introduction of its quad-core CPU, as there wasn’t really another option for them to explain the recent events. What we were surprised by however, was a somewhat inconsistent message to analysts about how the company would perform in the current quarter, and their promise to return to profitability in the second half of next year. Wall Street apparently feels the same way as AMD's stock price continues its decline even today.
So, when we stepped back and looked at AMD's past 12 months, its multi-delayed next-generation CPU debacles, and the unclear guidance on future financial points, it made us wonder: Has AMD become a very attractive acquisition target? Think about it: A company could come in right now and buy AMD for less than what AMD paid for ATI. In so doing, they would become a major player in the CPU, GPU and consumer electronics chip arena in a snap. Sound possible?
The TG Daily editors have given it some thought and here's what has come up.
http://www.tgdaily.com/content/view/35289/118/
The article doesn't say it but if AMD is bought out it will terminate the x86 cross-licenses with Intel.
6.2. Termination for Cause.
---------------------
(a) A party may terminate the other party's rights and licenses
hereunder upon notice if the other party hereto commits a
material breach of this Agreement and does not correct such
breach within sixty (60) days after receiving written notice
complaining thereof. In the event of such termination, the
rights and licenses granted to the defaulting party shall
terminate, but the rights and licenses granted to the party
not in default shall survive such termination of this
Agreement subject to its continued compliance with the terms
and conditions of this Agreement.
(b) A party hereto may terminate this Agreement upon sixty (60)
days written notice of termination to the other party given at
any time upon or after:
(1) the filing by the other party of a petition in
bankruptcy or insolvency;
(2) any adjudication that the other party is bankrupt or
insolvent;
(3) the filing by the other party of any petition or answer
seeking reorganization, readjustment or arrangement of
its business under any law relating to bankruptcy or
insolvency;
(4) the appointment of a receiver for all or substantially
all of the property of the other party;
(5) the making by the other party of any assignment for the
benefit of creditors;
(6) the institution of any proceedings for the liquidation
or winding up of the other party's business or for the
termination of its corporate charter;
http://contracts.corporate.findlaw.com/agreements/amd/intel.license.2001.01.01.html