Barron's, part of The Wall Street Journal digital network, reported a rumor this week that Dell may acquire AMD, the world's No. 2 maker of PC processors. The speculation that AMD might be up for grabs, whether by Dell or anyone else, initially pushed AMD's stock up 35 cents, or 4.2 percent, to $8.63. It's now trading at $8.75. So how likely is this to happen?
"There's not a lot of color on the rumor at this point," Barron's writes.
Trying to make heads or tails of it all, Bloomberg spoke with Patrick Wang, an analyst at Wedbush Securities, who noted that there's some "chatter" AMD is up for sale, however it's unlikely that will happen.
"There is no management team there," Wang said. Even still, "It's a far-fetched possibility."
This would be quite the turn of events. AMD once took issue with Dell for playing favorites with Intel, which was the result of specialty pricing from Chipzilla, and Intel eventually agreed to pay AMD $1.25 billion to settle antitrust charges. Dell went on to carry more AMD processors, and it's all apparently water under the bridge at this point.
Scooping up AMD, which is currently valued at about $6 billion, could put Dell in an awkard position, this time with Intel. It would be interesting to see how that would play out, but chances are, we'll never know.