What if AMD went bankrupt?

lunyone

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Which 3 companies? AMD owns ATI, so what are you saying? Are you thinking that AMD would spin off the GPU department back to what was formally know as ATI? I don't think so. And currently there is only 2 right now, nVidia and AMD. If AMD went bankrupt than there would only be 2 major descrete manufacturers, maybe, and that would be AMD and nVidia still.
 

yomamafor1

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I don't think OEMs, justice department, FTC, EU, and other corporate / government entities will allow AMD to go bankrupt. There is too much to risk for AMD to disappear from the market.
 

endyen

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Not going to happen.
First off, AMD isn't even really running a deficit. They are hiding a lot of income by buying back thier own shares.
They are selling ever chip they make.
On the other hand, if things did go really wrong, The could go into recievership, seek bancruptcy protection, pay off thier debts on pennies on the dollar, and just keep keeping on.
They have a huge pile of assets that have been depreciated to zero, but have huge resale value.
AMD aint going nowhere for a long time.
 

turpit

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Except the Phenom 9700s. And the Barcies. And most of the 9600 and 9500s produced, judging by the number of actuall owner reviews.

Thats what you meant, right?
 
G

Guest

Guest
AMD has been in this financial situation before and have come out alright. I can't see them disappearing anytime soon. I won't be too surprised if they did go bankrupt though.
 

jaguarskx

Titan
Moderator


What are you talking about? Your statement makes no sense. If AMD were to financially implode the justice department, FTC, and EU will not be able to do anything.

Bankruptcy does not automatically mean the company will die. It will go into receivership, and payoff their creditors. AMD will only be dissolved if it can no longer earn enough net revenue to payoff their creditors. At that point AMD will die. The creditors will sell off AMD's assets to recover as much money as possible.

The FTC may or may not allow Intel and nVidia purchase the CPU / GPU assets, but if no other company is willing to step up to the plate to buyout the assets (both intellectual & physical), then that could be a remote possibility.

One thing for sure is if AMD were to file for bankruptcy, the share price will plummet, turning AMD into essentially a penny stock company. This will be bad for the investors, but it doesn't really have any impact on AMD itself. This would be an opportunity for AMD to buy back large amounts of shares to turn itself into a private company in the extreme case. Depending on the number of outstanding shares it also allows another company to acquire a majority ownership of AMD stock and take over the company (debt and all), but this is unlikely.

Sadly, AMD/ATI is now worth around what ATI used to be before it was acquired by AMD. In my opinion, it is the GPU division (ATI) that will be carrying AMD for a while until it can get it's CPU division back on track.
 

StevieD

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The assets of the company are worth something. Physical and intellectual assets.

If things get really bad, one of our Asian friends (Sammy, Sony, Toshiba, Hitachi et al) would snap up the assets just to become a bigger player in the market and to prevent somebody else (Intel) from controlling the market segment and limiting the buying company's profit margins. These days I suspect that somebody would be Sammy, but ya never know.

Outside of the competition, there is always a good ole USA investment banker type.

AMD can declare Bankruptcy, but the assets of the company are not going to disappear.

Remember, without AMD we would be waiting for that new Pentinium 1 that will be hitting the market in 2012.
 

weilin

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actually, i think the result will be similar to what happened between microsoft/apple. Intel is in no mood to get sued for being a monopoly, so chances are, they will throw money at amd. Enough money to keep the company limping along, but not enough to make them a threat in any way. It would be better than being broken apart. Microsoft did that with apple a while back, but apple (i think) has since bought back all the shares microsoft owned.
 

cisco

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I think it's a more logical choice that Nvidia would buy them. It would get them into processors (which they want) and they could part out ATI eliminating their top competition.
 
AMD is big, and necessary, enough that the worst that'd happen (near term) is they'd file for Chapter 13 reorg. And fore sure they'd get that along with government subsidies.

As far as nVidia buying AMD? The resultant company would effectively have a monopoly for graphics cards. So that wouldn't be allowed unless ATI were spun off as part of the deal. Now... If you were nVidia's CEO, would you really want to take the gigantic stone from your primary competitor's neck and place it around your own???
 

gpippas

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Actually Nvidia would only have the discrete graphics card monopoly. Intel has the largest market share with there IGP's. And Intel does plan to move into the discrete market anyway.

I don't think Nvidia would have a problem argueing that they wouldn't be a monopoly.
 

Concord

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Bankruptcy for AMD seems unlikely at the moment, but would be a sad result. I think AMD plays a vital role in keeping the competition going. Look at all the processors that came out from both Intel and AMD due to the competition in recent years. Sure they are snapping at each other's throats but their new products and slashed prices are really doing the consumer some good. I wish Microsoft had some good competition for their sorry excuse of a Windows line.
 

Conumdrum

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Whatever. We buy for the bang for the buck. AMD/Intel/Communism. Whatever works. Open source consumerism drives innovation, who cares who does what? We buy it. It's not like your fav sport team. I'm a SONY fanboi, right. Pana comes out with a killer TV, you think I'm a SONY boi, get real.

Ohh forget "Merry Christmas"! What about "Merry Retail" instead?
 

speedbird

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On the Apple subject, it wouldn't surprise me if a huge portion of their profits are from Ipods and the other trendy gadgets they sell?

AMD Phenom is a disappointment and the Bug has made things worse. If AMD can release the higher clocked Phenoms without the bug they might be in for a chance. I don't think it's over for AMD because they have bounced back before.
 

Conumdrum

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Okay, bounce to a AMD in six months, or a year from now. Or buy whats fastest and most bang for the buck.. What does it matter what the name is? We buy whats best, not what the name is. AMD/Intel. 13000 or 17000 3DMark for the same cost? Thats what matters.
 

speedbird

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I doubt that would happen because if the Apple OS could can be purchased for any compatible system like Windows, Apple computers would pretty much become pointless. With Microsofts stranglehold on the market, it could be a disaster for Apple to compete. At least presently Apple can pass their systems off as something exclusive and unique.

That's my take on it anyway :)
 

chunkymonster

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IF AMD were to find the need to file for bankruptcy, and that's a big IF, the government would step in to ensure their stability and keep them in business.

AMD is largely having financial issues due to the ATI M&A, and people seem to forget that a reasonable ROI for a merger/buy out of that size is 3-5 years. It's only been about 2 years since AMD sealed the deal with ATI. Remember that AMD was looking at being in the black 4Q 2007 or 1Q 2008 prior to the Phenom TLB bug. So, all things considered, if it takes AMD until the end of 2008 to get in the black, they are not as bad off as some zealots would make them out to be.

I agree that the recent issues with Barcelona and Phenom have not helped, but you can't deny if the ATI buy-out did not happen, AMD's financial outlook would be very different from where it is today.

At this point, a lot seems to be riding on the B3 revision.

 

Mathos

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Think I'll clarify my points of view on processors and why I chose the brand I use. When it comes down to it, I could give two **** about 3dmark scores, or most any synthetic benchmark. What I care about is playable FPS in games, which more influenced by GPU. And, decent results in application real world usage. When it comes to that, AMD's Phenom processor performance isn't as disappointing as it is made out to be. Especially in instances where multi threading is used to take advantage of more than 1 or 2 cores. No it,s not an Intel killer though, and the software market needs to start moving to take advantage of more cores. Also note, that I don't care what a processor can do overclocked, unless its one that is specifically meant to be overclocked, such as the black edition AMD chips or Extreme edition Intel chips that have unlocked multipliers.

I also care more about the platform that the system is based on. Right now, I like AMD's platform, the 790FX chipset, though at this juncture I'm almost wondering if I should of waited for the SB700 revisions. But, what other platform can you put 3 or 4 video cards in crossfire on? And at this point I think it has more future upgrade potential than other offerings.

To the topic at hand though. I doubt AMD will go down soon, they'll most likely not see any great products coming from the till they get back up though. The GPU division will be carrying the CPU division till then. And on a possible conspiracy theory note. I almost wonder if AMD isn't intentionally trying to devalue their stock so they can buy up all the delinquent shares at the reduced price. Then as soon as they have all of them, and no longer have to worry about someone else buying them up. They could either go back to being a privately traded company, or, release something that actually does well to bring the stock value up, and start selling publicly again.

Also I'm sure if it comes down to it, you'll see a lot more governments giving them grants or money to keep them around to provide tech jobs in the area's where their fabs are.
 

OlSkoolChopper

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They'd better do somethin soon as $7.18 and headin for the SIXES! AMD is losing value faster than an ugly girl when they turn up the lites in the bar! :lol:
 

dario77

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what if AMD went bankrupt?
wow...just think how that would change the face of places like tom's forums...
people might actually start posting relevant topics and threads!!!
 

bfellow

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technically, AMD can go bankrupt and best case is to have it broken apart into separate companies controlled by different corporations.
 

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