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In a bid to revive its chip design operations, Microsoft Corp. may acquire Advanced Micro Devices, according to a source familiar with the matter. The software giant approached AMD several months ago, the source indicated. The result of the talks is unclear.

Microsoft Corp. has been selling game consoles for over ten years now and back in 2006 the firm even formed a division to design chips for its products, primarily game consoles. While this internal group has clearly developed some chips for Microsoft's hardware, the company used chips designed by Advanced Micro Devices and Nvidia Corp. for its Xbox One consoles and Zune players, respectively. As it appears, Microsoft's own chip design team cannot really develop competitive solutions for the company's devices and in order to make its chip operations viable.

The details about negotiations are unclear, just like Microsoft's exact proposal to AMD. However, since Microsoft has $95.3 billion in cash, whereas AMD's market capitalization right now is $1.81 billion, the software giant may buy AMD relatively easily. In fact, current value of AMD is three times lower than the company paid for ATI Technologies in 2006.

Analysts estimate that Microsoft pays around $100 for every Xbox One system-on-chip to AMD. Life-to-date sales of Xbox One are around are around 12.6 million units, which means that Microsoft has already paid AMD around $1.26 billion for Xbox One chips. The acquisition of AMD could save it around a billion per year on Xbox One chips alone. It the company develops appropriate chips for smartphones and tablets, Microsoft's savings could be even higher.

Even though AMD is not really profitable, it has a set of technologies that could interest a lot of companies, including Samsung Electronics, Qualcomm, Xilinx, Chinese developers of microprocessors and other. Since AMD is evidently in trouble these days, it is not surprising that it is approached by other companies with acquisition proposals.
Source: http://www.kitguru.net/components/anton-shilov/microsoft-is-interested-to-buy-advanced-micro-devices-source/

Looks like Fudzilla has insider reports that Microsoft is seriously interested in buying AMD:
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Exclusive: Talks taking place

Our industry sources claim that Microsoft is seriously talking to AMD about buying the chipmaker. The pair have been in talks for a while, but we are unsure if the deal is happening or when something will be announced.

In case that Microsoft does acquire AMD, as we suggested a few months back, it will control the development of the next generation console chip for its future Xbox and it would be able to create decent GPUs to promote its DirectX 12 and beyond. Of course Microsoft would have to compete with Nvidia. Linux fans of AMD GPUs would not be too happy about it, although Redmond has been getting more open source friendly lately.
Source: http://www.fudzilla.com/news/graphics/38725-microsoft-interested-to-acquire-amd

Rather not make another thread for this since it is all relative:
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AMD shares spike due to rumours that Microsoft will buy it

Just ahead of the weekend the rumours concerning Microsoft's interest in buying AMD were rekindled. Fudzilla published an exclusive, based up information from its industry sources, claiming "Microsoft is seriously talking to AMD about buying the chipmaker".



I'm not sure at exactly what time Fudzilla published its story, but as you can see from the share price graph, above, AMD's share price started to climb at a rapid pace at about 2.30pm US Eastern time. It climbed about 15 per cent in 20 minutes, and then it settled down and stabilised to close just over 9 per cent up on the day. At the time of writing the US markets are closed with AMD shares worth $2.01. AMD's 52 week low was $1.61, at the end of July, and its high was $4.11 - that was exactly a year ago
Source: http://hexus.net/business/news/corporate/86423-amd-shares-spike-due-rumours-microsoft-will-buy/

Quote:
Several online publications have reported that Microsoft is currently in talks with AMD about its acquisition of the chip outfit. The reported rumors have created a bubble that drove the AMD stock price up by 9.24 percent as NASDAQ closed on Friday, Sept. 11. AMD was also upgraded from "underperform" to "market perform" by Bernstein, a recognized Wall Street sell-side research and brokerage firm.
Source: http://www.techtimes.com/articles/84168/20150914/amd-shares-soar-as-rumors-swirl-microsoft-intel-want-to-take-over.htm
 

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oh hey our weekly AMD buyout thread. looking forward to beating this overly discussed topic to death again. Already went about bought myself a new bat after breaking my last one on the last thread from last week

Hey guyz on the plus side, the next Xbox will be able to run Crysis 3 on PC settings
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Originally Posted by szeged View Post

god no please no.
God yes please yes, looking forward to moar Halo and Gearz
 

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Well...

AMD is pretty good when it comes to mobile, something known. It could boost Surface tablets' production cycle... The purchase would be logical. In consumer grade though...

We're doomed.
 

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I don't know what to think of this.
 

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Hasn't everyone and their mother had interest at some point in buying AMD by now?

Also article acts like with buying AMD you save money on the Xbox one chip which isn't really the case. That 100 dollar is what AMD gets before the chip is fabbed etc etc. Profit margin is like 10 dollar a chip maybe less. And buying a company means investing in new IP so it can only be long term savings not a quick way of saving as much as you bought the company for.

Also lol Kitguru
jerry.gif
 

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Quote:
Originally Posted by maarten12100 View Post

Hasn't everyone and their mother had interest at some point in buying AMD by now?
My mother and I have expressed interest in buying out AMD.

She can use their CPU tech to process her word documents and I can use their GPU tech to build a GPU server to run Arkham Knight with Gameworks on
 

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Quote:
Originally Posted by maarten12100 View Post

Hasn't everyone and their mother had interest at some point in buying AMD by now?
as they have an interesting position in the market with a handful of IP's that can be useful for different companies. This one is slightly more plausible only to the extent that it at least keeps processor development in the States so the Feds would be less likely to prevent that purchase.
 

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Originally Posted by edo101 View Post

My mother and I have expressed interest in buying out AMD.

She can use their CPU tech to process her word documents and I can use their GPU fabs to build a GPU server to run Arkham Knight with Gameworks on
Sounds like a great plan but AMD doesn't have fabs you have to either acquire Glofo or have Mapper do a small batch. But with Gameworks enabled you'd want a large batch. That Game isn't going to Work by itself in Nvidia Gameworks titles. (the Gameworks hate is totally justified as we all know giving money away is not something companies do mostly)
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Originally Posted by Dudewitbow View Post

as they have an interesting position in the market with a handful of IP's that can be useful for different companies. This one is slightly more plausible only to the extent that it at least keeps processor development in the States so the Feds would be less likely to prevent that purchase.
They certainly do but AMD being acquired will probably only stand a chance if they don't turn big enough net profits before end of 2019.
 

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And so AMD becomes an exclusive console manufacturer.

BRB, going to go stand in the middle of traffic and jump in front of passing vehicles.
 
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Quote:
Originally Posted by maarten12100 View Post

Sounds like a great plan but AMD doesn't have fabs you have to either acquire Glofo or have Mapper do a small batch. But with Gameworks enabled you'd want a large batch. That Game isn't going to Work by itself in Nvidia Gameworks titles. (the Gameworks hate is totally justified as we all know giving money away is not something companies do mostly)
They certainly do but AMD being acquired will probably only stand a chance if they don't turn big enough net profits before end of 2019.
GPU tech I mean. But yeah we talked it over and it sounds like a sound plan. Gameworks is too demanding and I need a server to run the complex overtessellation

And sometimes her word documents crash on Nvidia Crash Ready Drivers so its a win win
 

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To be fair.... If all Microsoft did was buy AMD and then turn over their console hardware design division to them both Microsoft and AMD would come out as winners.
 

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Msoft should totally buy AMD, sounds like it is a no-brainer.

-Giving 3-5 billion to AMD over the course of the XB1 anyway.
-Get paid for every PS4 too.
-AMD CPU/GPU optimized for windows machines.
-Gives them Mantle/Vulcan.
-Having x64 gets them x86 one way or another [...details, ...details]

...sure the implications for the consumer aren't great, but the upside for Msoft is just too much to ignore.
 

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Actually, on surface, there appears to be a good fit between AMD and Microsoft, depending on how Microsoft is viewing its long term growth plans. Wondering what that would mean for Nvidia, given that MS is the dominant operating system for desktop pcs...
 
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