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Old January 24, 2008, 05:32 AM
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I predicted this in another thread about a month or so ago but I can't find it- both companies are moving into India heavily and IBM is working on it's own process.

IBM-AMD Merger Rumors Have Markets Abuzz



By Damon Poeter, CMP Channel
8:34 PM EST Wed. Jan. 23, 2008
Advanced Micro Devices (NYSE:AMD) has "no comment" on a Financial Times report that the chipmaker will soon form a "deeper partnership" with IBM (NYSE:IBM), or even an outright merger with the computing giant. But that didn't stop AMD stock from gaining 73 cents to $7.56, or 10.7 percent, in Wednesday afternoon trading on the heels of the news.
"A deal could see IBM's microelectronics division merge with AMD at some point, possibly in the near term," reported David Zielenziger in the Financial Times Wednesday afternoon, citing unnamed "industry sources."
AMD's financially disastrous year has sparked no shortage of speculation about its future in recent months. But until yesterday's report by Zielenziger, few such exercises contained actual names and details.
Sunnyvale, Calif.-based AMD lost a total of $3.38 billion, or $6.06 per share, across the board in 2007, although much of that was in costs associated with AMD's 2006 acquisition of graphics maker ATI. A $622 million cash infusion from an Abu Dhabi investment firm late last year gave AMD some breathing room. But analysts believe the company may have just a year to five quarters to return to the black -- not much of a window at all in the capital-intensive semiconductor industry.

From ChannelWeb
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Old January 24, 2008, 08:44 AM
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Wow...that'd be interesting. I don't know how good or bad it would be though.
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Old January 24, 2008, 09:16 AM
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Some Stay AMD is poison and will KILL IBM. However I see IBM have no benefit from this and AMD growing just a little. No doubt in my mind AMD will become a competitor to Intel (seeing how there becoming small fries compared to Intel) if IBM takes over. Question is when? and how long till we see results.
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Old January 24, 2008, 09:29 AM
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If this was to happen how can DAAMIT even afford it?
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Old January 24, 2008, 09:42 AM
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Oh I believe AMD's price:performance ratio will stay intact... I believe Intel will be forced to drop there prices if this happens.
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Old January 24, 2008, 02:26 PM
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IBM may spin of their micro division and merge AMD with it, but they won't take ownership of AMD. This is just my opinion.

Last edited by Ugly n Grey; January 24, 2008 at 02:57 PM.
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Old January 24, 2008, 06:05 PM
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Aren't AMD and IBM invested in radically different architectures though? x86-64 for AMD and PowerPC for IBM.
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Old January 24, 2008, 08:56 PM
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IBM also has license to x86 and a production license (cloning licensing) up to the Pentium level. The current AMD process technology used to make AMD chips comes from IBM via cross licensing. The PowerPC will also be "Opteron Compatible" in the future. The companies are already tied close technologically, but that doesn't mean I see this deal happening, it's just fiction to me.
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Old January 25, 2008, 07:46 AM
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Source: No Truth To IBM-AMD Acquisition Rumors - Hardware - IT Channel News by CRN and VARBusiness

This link calls it 'rumor mill gone amok' And on a sour note,

Widespread talk of an IBM-Advanced Micro Devices merger, credited for giving AMD (NYSE:AMD)'s share price an upward kick of nearly 11 percent for a few hours Wednesday, is nothing but speculation run amok, a source close to AMD said Thursday.

"A deal could see IBM (NYSE:IBM)'s microelectronics division merge with AMD at some point, possibly in the near term," reported Mergemarket's David Zielenziger in the online version of the Financial Times Wednesday.
But the M&A rumor mill often churns out scenarios involving Sunnyvale, Calif.-based AMD, many citing Armonk, N.Y.-based IBM as a possible buyer, the source said. In this case, the source wondered whether published speculation by a financial analyst might have been misinterpreted and then passed on as fact by the "industry sources" cited by Zielenziger. Interestingly, though in no way confirmed as relevant to the AMD-IBM rumors, in 2004 the chipmaker and the computing giant extended a resource-sharing contract to jointly develop 65nm and 45nm process technologies, among other R&D arrangements. That contract extension called for AMD to pay IBM between $250 million and $280 million, and it's up at the end of this year.


And on a sour note- fitch has further downgraded AMD from junk to junkier:

NEW YORK -
Credit rating agency Fitch Ratings downgraded its issuer default rating for chip maker Advanced Micro Devices Inc. Friday to "B-" from "B."
Both ratings are within the non-investment grade or "junk" range.
Fitch also downgraded AMD's senior unsecured debt to a "CCC/RR6" or "Poor Standing" rating from "CCC+/RR6" or "Substantial Risk."
Fitch said its rating outlook on AMD remains negative.
Approximately $4.1 billion of debt securities are affected by Fitch's actions.
Fitch said the downgrade and negative outlook mainly reflect AMD's operating performance and limited financial flexibility.
It said AMD's operating performance was significantly weaker than expected over the last several quarters because of product delays and Intel Corp. (nasdaq: INTC - news - people )'s strengthening product range.
It expects AMD to benefit from anticipated microprocessor unit growth in 2008, a refreshed product range and lower fixed costs following a restructuring in 2007.
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