Possibly another well known company splitting or spinning off
June 23, 2015 Leave a comment
So along time ago [bur not in a galaxy far, far away] we had the beginnings of Hewlett-Packard. They were in the computer business primarily at one point. A while back [in our galaxy], HP announced that they will split off the PC business from the rest.
Also a bit far back, Symantec started up as a security and management software company. Then they bought backup software company Veritas [which had its beginnings as part of Seagate]. Symantec announced recently that the backup and related areas would split off to form [drum roll] Veritas.
The latest with some denying is AMD. In 2012, about 90 percent of AMD’s revenue came from PCs. Last year, that number was down to about 60 percent.
At the same time, AMD is competing with other chip makers that use ARM’s low-power systems-on-a-chip (SoC) architecture for small, highly-efficient systems that run in Web-scale and cloud environments. But there is heavy competition and the mark-up isn’t that high.
Meanwhile AMD has cut 7% of the workforce in 2014 and it continues to try to expand its reach into new growth areas and to lessen its reliance on the stagnant global PC market.
According to a report, AMD had gone so far as to bring in a consulting firm to help with reviewing its options and help develop plans for how a spin-off or break up could happen.
But how would they split? Some are suggesting splitting off the GPU portion of the business that originated from the purchase of ATI.
Hmmm. What goes around comes around.