AMD has been cutting down on its expenses for a while now. The company recently laid off employees and has been trying to struggle as the tech world moves on from the era of PCs to smartphones and tablets. Now that AMD has hired JPMorgan, many are speculating that the chip-maker may be up for sale. However, that’s now the case.
AMD’s forte, since its inception, has been PC chips. However, the PC sales around the globe have declined considerably ever since smartphones and tablets have gained traction. And AMD has been trying to cope up with this massive shift.
The only salvation for the company is to be able to break a good deal to provide the chips for a leading smartphone or tablet brand. But that doesn’t seem to be happening. In view of this, it is understandable that AMD is reconsidering its financial options.
It recently hired JPMorgan Chase & Co, a move which lead many to believe that perhaps the company is gearing up for a sale. But these notions were soon dispelled when AMD categorically stated that the company is not up for sale.
Rather, in an email, it said, “AMD’s board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD’s highly differentiated technology assets is the right approach to enhance shareholder value. AMD is not actively pursuing a sale of the company or significant assets at this time.”
Tech analysts believe if AMD were to go on sale, many tech giants such as Google, Facebook and even Microsoft may want to purchase it. However, for now, so is not happening.
Source: Reuters
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