AMD Dumping Execs: Business Units Next (AMD)

AMD is in poor shape – rival Intel continues to gain share in the chip market, and earnings have been weak. So the company has been kicking execs out left and right – so far the CEO, CTO, chief talent officer, and head of computing services have gotten the boot. But we don’t think that will be enough, and neither does AmTech’s Mark Conley.

He thinks that AMD will sell off their consumer electronics businesses – chips for TVs and handsets. Conley says Broadcom (BRCM) is a likely buyer of the TV business because they have "prior experience with (AMD's) ATI (division) in hiring consumer management, as well as previously purchasing consumer businesses," among other things.

But don’t expect this to be a lucrative deal for AMD. Conley thinks that Broadcom will be able to pick up the division for $250M-$375M, or 1x-1.5x earnings.

See Also:
AMD Hammered Again; CEO Hector Ruiz Out
AMD Dumps Two Execs
AMD Boots CTO Hester And Won't Replace Him