Advanced Micro Devices has reportedly hired JPMorgan Chase & Co to explore options such as a potential sale, according to Reuters. But AMD issued a statement that appears to deny the idea that the company has put itself on the block.
The conflicting reports come at a time when Sunnyvale, Calif.-based AMD is struggling to move beyond PCs to making chips for mobile devices. A couple of weeks ago, AMD chief executive Rory Read (pictured) announced a deal with low-power chip design firm ARM for AMD to create 64-bit ARM-based chips for servers. That was viewed as a move to escape its deadly competition with Intel and expand into the low-power server chips market.
AMD’s stock rose 18 percent on the news before closing up 5 percent at $2.09 on the New York Stock Exchange. The Reuters story cited unnamed sources. It said that an outright sale of the company is not a priority, and other options could include the sale of its patents.
AMD is pinching pennies now. It is laying off 15 percent of its staff, and its shares have fallen more than 60 percent this year. Its market value is $1.4 billion and long-term debt is about $2 billion.
In a statement, AMD 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.”