AMD shares spike due to rumours that Microsoft will buy it

[azrael-]

WIND?

a

Touché!

[DanceswithUnix]

One problem won't the x86 licence be invalid if AMD Sells at all? Or is it just fine if they sell off certain divisions?

I don't see AMD merging with Microsoft, if they kept AMD as a stand alone company that just happened to have Microsoft as an owner then I can't see any contractual problems.

[shaithis]

Would Intel even consider revoking the x86 license if Microsoft bought AMD?

Their relationship has been way too mutually-beneficial over the years for that to happen IMO

[RT-XD]

I'm not saying a merge is a good thing - but this way, at least Intel will have some competition going again

[DanceswithUnix]

Would Intel even consider revoking the x86 license if Microsoft bought AMD?

Their relationship has been way too mutually-beneficial over the years for that to happen IMO

Can't see how it was beneficial to Intel, and if IBM hadn't forced Intel into it then AMD wouldn't have been a second source in the first place.

Intel's attempt to lucratively steamroller everyone onto Itanium which no-one else had a license for was stopped by AMD, and now Intel have the prestige of running an AMD instruction set. Even now, Intel needs a huge L4 cache to slightly better the graphics performance of an AMD chip a third of the cost.

Nah, AMD are a thorn in Intel's side. If they could buy out AMD for just a few billion, then they could increase the cost of their CPUs by 50% thanks to a lack of competition and slash their R&D costs with no-one to compete with and make their money back within a year. If they can block sales of AMD products in the courts for long enough to kill the market for them then given how well it worked for killing off Nvidia's chipset business and that pesky Ion graphics they did for Atom processors, I expect Intel would do it in a heartbeat.

But if AMD remains an independent AMD, I can't see how the lawyers could get a foot in.

There is possibility that Microsoft wouldn't care. Perhaps x86 really isn't profitable and the Xbox 2 could run on an ARM chip which AMD is also developing. Microsoft could get a serviceable CPU and GPU technology for their games consoles and perhaps even phones, and AMD64 can be consigned to a footnote on a wikipedia page.

[nitro912gr]

One problem won't the x86 licence be invalid if AMD Sells at all? Or is it just fine if they sell off certain divisions?

there is a lot of cross-licensing between the 2 companies, so the only thing that is going to happen is to renegotiate all those licenses from both sides.

As for the intel buying amd, I don't think it is possible due to anti-monopoly regulations world wide.

Even if this happen, ARM architecture is getting stronger and stronger and it will sooner or later be strong enough to take on x86 in the desktop and server arena, so it will not really be just intel playing along, just playing with another player (or players, there are many ARM chipmakers) in another league.

[Corky34]

It would be a lot more difficult in today's market to argue that Intel had a monopoly, even though to us normal people it would, the lawyers and legal system would probably view ARM CPUs as competition, especially in today's mobile centric world.

[DanceswithUnix]

It would be a lot more difficult in today's market to argue that Intel had a monopoly, even though to us normal people it would, the lawyers and legal system would probably view ARM CPUs as competition, especially in today's mobile centric world.

I would agree, specially now that ARM *can* run Crysis http://www.engadget.com/2015/03/03/crysis-3-android/

and that is on an X1 that only uses A57 cores. The A72 cores that are coming out are a *lot* faster.

[Platinum]

Fingers crossed this does not happen!

[kingpotnoodle]

IF Microsoft decided to buy AMD then I imagine it would be simply to safeguard their supply of XBox One CPUs during the console lifecycle. I can't see why Microsoft would seriously be interested in future CPU development, they would undoubtedly streamline the AMD business to reduce the XBox One hardware costs - I suppose it's not that mad they could continue CPU development for future consoles but I doubt it, AMD seems to be falling further and further behind without profits so it doesn't sound like a winning idea.

[kalniel]

IF Microsoft decided to buy AMD then I imagine it would be simply to safeguard their supply of XBox One CPUs during the console lifecycle.

And restrict Sonys? But no, Sony probably have a contract and would happily jump to a competitor for future consoles.

[Corky34]

IF Microsoft decided to buy AMD then I imagine it would be simply to safeguard their supply of XBox One CPUs during the console lifecycle...

You seem to be forgetting Microsoft also product their own Tablet/Laptop and phones.
In a dystopian future they may well produce their own version of a PC, it could be argued from Windows 8 onwards that Microsoft have already started down that road.

[watercooled]

WIND?

a

Windows Micro Devices?

Oh, maybe not...

Seriously though, we've heard this sort of rumour over and over again over the past few years, alternating between Samsung, Qualcomm, Microsoft, etc.

[HavoCnMe]

Please NO, Samsung come in and buy AMD.

[Sumanji]

The US authorities also don't like foreign buyers of US firms, so I didn't believe the Samsung potentially buying AMD story a while ago.

Sadly didn't stop Lenovo/Motorola, Lenovo/IBM etc... backdoor spyware all in yo' tech now

Re. the share price surge, I would suggest MS has nothing to do with it... more like the formation of RTG has been taken by the market as a signal that AMD is going to divest certain business units...

[Corky34]

Or it could just be a blip for no real reason, seeing as their share price was back around the 1.80 mark by close of business on Monday.