Thursday, 09 August 2012 07:33
AMD rallies on acquisition rumours, gains 8 percent
Written by Peter Scott
Samsung and Qualcomm mentioned as possible buyers
Shares of AMD rose by up to 10 percent Wednesday on rumours that Samsung and Qualcomm are looking into a possible acquisition. AMD closed 8 percent up.
However, even the analyst who brought up the possibility of a Samsung/Qualcomm deal downplayed the rumours. Although the industry is slowly starting to consolidate and create ever larger blocs, it is still a bit too early in the game to say whether AMD is indeed up for grabs.
AMD is fabless and so is Qualcomm, whereas Samsung stamps out its own Exynos processors along with a wide range of other products for its own needs and third parties. It is not easy to see how such a deal would make much sense for any party, but in the long run it could pan out.
This is why we are not inclined to believe the rumours. Although Qualcomm or Samsung could stand to gain from acquiring AMD, now just doesn’t appear to be the right time.
More here.
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