AMD becomes takeover target

Judgment made on January 8, 2009:  AMD successfully avoided hostile takeover attempts from when the prediction was made until the end of 2008. -- The Industry Standard

Original prediction: With AMD's woeful acquisition of ATI, the company has taken write-downs and charges for months. There is no doubt that AMD made a strategic error in its purchase of ATI but how long can the beleaguered chip maker bleed dollars from its corporate veins?

$948 million in charges were taken by the company on July 11, 2008 and $880 million of these charges were ATI related. AMD reported yet another loss for its most recent quarter on Thursday, July 17, 2008.

Indeed, after reporting this loss, AMD replaced its CEO,  Hector Ruiz, with Dirk Meyer.  Mr. Meyer was previously president and COO having worked at AMD for 12 years.

The stock is at a five-year low and management and some wonder if AMD has the vision necessary to dig the company out of the hole they have created for themselves.

This is a prediction that AMD/ATI will be the target of a takeover bid before 12-31-2008. For this prediction to be judged, a takeover bid for AMD must be publicly announced before 12-31-2008. This takeover can be in any form; friendly, hostile or reverse. Bets will close on December 26, 2008, while judgment will occur on January 1, 2009, unless events dictate an early judgment.