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News Silver Lake rumoured to be buying 20 per cent of AMD

Discussion in 'Article Discussion' started by Gareth Halfacree, 9 Sep 2015.

  1. Gareth Halfacree

    Gareth Halfacree WIIGII! Lover of bit-tech Administrator Super Moderator Moderator

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    Gareth Halfacree, 9 Sep 2015
    #1
  2. Corky42

    Corky42 Where's walle?

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    It's make or break time for AMD in 2016-17, fingers crossed ZEN Core and Arctic Island can get them out of trouble.
     
    Corky42, 9 Sep 2015
    #2
  3. Hustler

    Hustler Minimodder

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    Asset stripping hedge fund more like.

    ...within two years we'll be reading how senior AMD management are pocketing huge pay outs whilst the workforce will be cut back hugely.

    Bye bye AMD, it was fun while it lasted.
     
    Hustler, 9 Sep 2015
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  4. loftie

    loftie Multimodder

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    Could it be possible the 20% is the Radeon Group and they're getting rid of gpus? Or would that not be possible?
     
    loftie, 9 Sep 2015
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  5. Gareth Halfacree

    Gareth Halfacree WIIGII! Lover of bit-tech Administrator Super Moderator Moderator

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    They're not buying a chunk of the company, they're buying a 20 per cent stake in the company. Basically, they're buying 20 per cent of the company's shares. It's a purely fiscal manoeuvre: they're not going to walk away with the graphics division or a handful of buildings.

    That said, their shares will be voting shares and will likely give the investment group positions on the board. That gives Silver Lake a certain amount of control over the future of the company: it could veto things that AMD's other shareholders want to do, or even pressure said shareholders into doing things that they otherwise wouldn't have done. That could include splitting off the graphics division into a separate company - gawd knows there have been plenty of rumours about that over the last few years - but this particular deal, without any further insider knowledge, doesn't appear to make that any more or less likely. (Well, arguably less: if AMD was thinking of splitting in twain because it was running out of cash, it now has more cash and so doesn't need to do that any more.)
     
    Gareth Halfacree, 9 Sep 2015
    #5
  6. loftie

    loftie Multimodder

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    Cool, thanks for clearing that up, my understanding of business is terrible so wasn't sure what it could mean.
     
    loftie, 9 Sep 2015
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  7. rollo

    rollo Modder

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    To many big unknowns about this. Where AMD gets the 20% from in the first place would be a big start point. Why they need to do it would be the next. Can't just make 20% without permission of existing share holders who may not be to happy about that.

    Most AMD supporters have said the company would survive till 2019 unaided.

    If this is simply a Market buying then AMD get nothing. Silver lake would not even gain board places.

    Too many big details need filling in on this one.
     
    rollo, 10 Sep 2015
    #7
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