Private Equity
The discussions between Advanced Micro Devices and private equity firm Silver Lake Partners have stalled because the two companies have failed to agree on the price and the future of AMD. The chip designer is reportedly considering other options. AMD’s current market capitalization is around $1.3 billion, hence, 25 per cent of the company’s stock would cost around $325 million, if acquired on the open market. However, $325 million may be less than AMD needs to fund development of products in 2016 and 2017. In today’s realities, this is $100 million more than AMD spends on research and development per...