Saturday, March 24th 2012

AMD Completes Acquisition of SeaMicro

AMD today announced it completed the acquisition of SeaMicro Inc., a pioneer in energy-efficient, high-bandwidth microservers, for approximately $334 million, net of cash assumed.

The acquisition of SeaMicro, which will now become AMD's Data Center Server Solutions business, enables AMD to accelerate its strategy to deliver disruptive server technology and provide its customers serving Cloud-centric data centers with highly-differentiated AMD-based solutions beginning this year.

"Our unique fabric technology is truly one of the crown jewels of the Cloud," said Lisa Su, senior vice president and general manager, Global Business Units, AMD. "The combination of this innovative technology with our processor design expertise greatly enhances our ability to attack the fastest growing portion of the server market with industry-leading low-power, low-cost, high-bandwidth solutions."

The purchase price consists of a cash payment of approximately $293 million as well as AMD's assumption of options to purchase approximately 6,475,000 AMD shares and the issuance of approximately 322,000 shares of AMD restricted stock. This transaction is included in AMD's first quarter of 2012 earnings guidance.
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34 Comments on AMD Completes Acquisition of SeaMicro

#1
faramir
What is "disruptive server technology" and who is it disruptive to ? Buyers' production process ? AMD ? Intel ? Oompa loompas ?
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#3
Super XP
Anything that will enable AMD to compete better.
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#4
trickson
OH, I have such a headache
by: Super XP
Anything that will enable AMD to compete better.
Yeah. But if AMD would use that kind of cash for R&D they would not need to buy up a useless entity now would they? I see this as nothing more than pissing away good cash! What a joke. In order to compete you need to have some thing that can compete in the first place this is just smoke an mirrors IMHO. Way to go AMD.
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#5
erocker
by: trickson
Yeah. But if AMD would use that kind of cash for R&D they would not need to buy up a useless entity now would they? I see this as nothing more than pissing away good cash! What a joke. In order to compete you need to have some thing that can compete in the first place this is just smoke an mirrors IMHO. Way to go AMD.
I'm lost on this statement. :confused:
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#6
trickson
OH, I have such a headache
by: erocker
I'm lost on this statement. :confused:
$293 million is a lot of cash. What did they get for this really? Any performance gains to the CPU/GPU? I do not get what AMD is doing here. They seem to keep buying things up. What benefit is this going to be to the end-users. Get it now?:confused:
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#7
INSTG8R
by: Super XP
Anything that will enable AMD to compete better.
I guess every little bit helps tho I don't see what this acquisition brings to the table.

Off topic I love your Avatar. Tom Baker was my favourite Doctor:cool:
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#8
erocker
by: trickson
$293 million is a lot of cash. What did they get for this really? Any performance gains to the CPU/GPU? I do not get what AMD is doing here. They seem to keep buying things up. What benefit is this going to be to the end-users. Get it now?:confused:
This has very little to do with home PC users. Everyone is a businessman when it comes to billion dollar CPU makers huh?
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#9
trickson
OH, I have such a headache
by: erocker
This has very little to do with home PC users. Everyone is a businessman when it comes to billion dollar CPU makers huh?
Well I guess they feel they need this, Although would be just as easy to make a competitive product to begin with.
Maybe you can tell me just what this is and how it helps AMD? Not just remind me how stupid I am?
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#10
AsRock
TPU addict
by: trickson
Yeah. But if AMD would use that kind of cash for R&D they would not need to buy up a useless entity now would they? I see this as nothing more than pissing away good cash! What a joke. In order to compete you need to have some thing that can compete in the first place this is just smoke an mirrors IMHO. Way to go AMD.
I think it's to be able to change current items prices on the shelf to compete with whats out there more rapidly ?.

Although i might be totally wrong haha..
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#11
trickson
OH, I have such a headache
by: AsRock
I think it's to be able to change current items prices on the shelf to compete with whats out there more rapidly ?.

Although i might be totally wrong haha..
If that was the case wouldn't it be cheaper just to change the price yourself? I mean to spend 293 Million bucks to do some thing like this seems a bit dumb to me. But hey what do I know .
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#12
erocker
by: News Post
The acquisition of SeaMicro, which will now become AMD's Data Center Server Solutions business, enables AMD to accelerate its strategy to deliver disruptive server technology and provide its customers serving Cloud-centric data centers with highly-differentiated AMD-based solutions beginning this year.
It's right in the op ^
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#13
trickson
OH, I have such a headache
by: erocker
It's right in the op ^
All I see is Blah, Blah server blah blah disruptive server technology.
Wish it was written in English.
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#14
mauriek
In this business, the biggest money comes from enterprise/server not PC or desktop probably over U$12 billion with market for microserver like Seamicro product maybe up to U$ 4 billion..

buy buying Seamicro AMD open to new market and new potential income. now microserver customer didnt have much choice for their CPU, mostly microserver vendor use Atom or Xeon CPU from Intel for their product, maybe AMD think..when you have better alternative of Atom CPU is logical to enter market for their CPU buy buying privately own company like Seamicro.
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#15
Andy77
by: trickson
All I see is Blah, Blah server blah blah disruptive server technology.
Wish it was written in English.
Before jumping to the conclusion that it's worthless because it comes from Charlie, just read it a bit and make up an idea...

http://semiaccurate.com/2012/02/29/amd-buys-seamicro-and-what-a-buy-it-is/

This one details more what SeaMicro's were up to...

http://semiaccurate.com/2012/03/01/why-purchasing-seamicro-was-important-for-amd/

Personally, I think it's a solution to the cries of Facebook, Twitter and the likes... the more Web 2.0 pushes its way into people lives the more they need such type of servers.

BTW, one of SeaMicro's chiefs is one of the original architects of AMD's K8.
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#16
Dent1
by: trickson
If that was the case wouldn't it be cheaper just to change the price yourself? I mean to spend 293 Million bucks to do some thing like this seems a bit dumb to me. But hey what do I know .
by: trickson
$293 million is a lot of cash. What did they get for this really? Any performance gains to the CPU/GPU? I do not get what AMD is doing here. They seem to keep buying things up. What benefit is this going to be to the end-users. Get it now?:confused:
Wow. You really don't have a mind for business.

At least be humble enough to admit you are not business savvy rather than saying it's dumb because you don't understand the concepts and principles of how businesses operation in the corporate world.
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#17
AvonX
by: trickson
All I see is Blah, Blah server blah blah disruptive server technology.
Wish it was written in English.
Well if this works out well for amd,the 334 million they gave for the acquisition of Sea Micro would be a small number of cash compared to what profit will bring them.
And then they will have allot more cash to spend on r&d. ;)
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#18
trickson
OH, I have such a headache
by: Dent1
Wow. You really don't have a mind for business.

At least be humble enough to admit you are not business savvy rather than saying it's dumb because you don't understand the concepts and principles of how businesses operation in the corporate world.
WOW you really act like a fucking know it all don't you! Why would Intel not have thought of this if it were such a smart move? Oh yeah Intel has such a HUGE share of the market already!
Dude your comment really did piss me off. I have no idea why you would treat any one like this but it sure is getting a bit much.
Let me ask you just who do you think you are? Do you KNOW me? If not then what is your problem?
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#19
Vulpesveritas
by: AvonX
Well if this works out well for amd,the 334 million they gave for the acquisition of Sea Micro would be a small number of cash compared to what profit will bring them.
And then they will have allot more cash to spend on r&d. ;)
Exactly. Not only do they get technologies faster, gaining them higher profits in the long run, but they also get another brand name behind them. Also adding to the profit. Plus, with AMD moving towards more SOC - like chips and higher power efficiency, it should end up interesting. I mean heck, look at brazos and zacate vs atom.
Plus, AMD might get some more power saving tech out of this, which would help seeing as they're behind in the die shrink game. And would mean they could compete more.


by: trickson
Oh yeah Intel has such a HUGE share of the market already!
Other bits aside, I'm not entirely sure Intel thought AMD would take this move, or simply don't think it will give AMD enough of an edge with Intel being ahead a die shrink and having so much market share it's a near monopoly. Hopefully this will give AMD an edge and they will gain a good bit of market share so we get better consumer chips too out of the tech spawned from the competition.
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#20
trickson
OH, I have such a headache
by: Vulpesveritas
Exactly. Not only do they get technologies faster, gaining them higher profits in the long run, but they also get another brand name behind them. Also adding to the profit. Plus, with AMD moving towards more SOC - like chips and higher power efficiency, it should end up interesting. I mean heck, look at brazos and zacate vs atom.
Plus, AMD might get some more power saving tech out of this, which would help seeing as they're behind in the die shrink game. And would mean they could compete more.
This makes more sense now thank you. But I thought that AMD made CHIPS I guess they need an extra boost in finding new tech.
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#21
Vulpesveritas
by: trickson
This makes more sense now thank you. But I thought that AMD made CHIPS I guess they need an extra boost in finding new tech.
They do, I mean let me point out that Intel puts more into R&D each year than AMD makes in total income before taxes, operating fees, etc. So that AMD needs an extra boost to keep up isn't really that surprising.
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#22
trickson
OH, I have such a headache
by: Vulpesveritas
They do, I mean let me point out that Intel puts more into R&D each year than AMD makes in total income before taxes, operating fees, etc. So that AMD needs an extra boost to keep up isn't really that surprising.
I agree. You helped me understand it more than any one else has and you did it without calling me an idiot. For that I Thank You. :respect:
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#23
AvonX
I think Rory Read's talks in financial analyst day start to make sense now :p
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#24
Super XP
So we all understand the vital importance this is for AMD. :)
I can see AMD making 5 x this little investment in a matter of about 5 to 7 years. That is good business.
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#25
AvonX
by: Super XP
So we all understand the vital importance this is for AMD. :)
I can see AMD making 5 x this little investment in a matter of about 5 to 7 years. That is good business.
LoL was that a joke?
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