Rumor: Microsoft looking to buy AMD

Rumor has it that Microsoft is interested in purchasing Advanced Micro Devices (AMD). This rumor comes in hot on the heels of the report that Samsung would be purchasing the technology company. Once that rumor fell through, the next company in line had to be Microsoft.

It's entirely possible that AMD has contacted the companies themselves to be bought, without having to publicly list themselves as 'For Sale' — but it's not likely. The purchase of AMD is well-within Microsoft's budget, Microsoft has around $95.3 billion in cash and AMD it worth around $1.81 billion right now.

The interesting thing about this purchase is that Microsoft uses an AMD chip in their Xbox One and are currently paying around $100 per console for the chip alone. The acquisition would save Microsoft billions of dollars.

Say Microsoft does purchase AMD, Sony would be stuck paying Microsoft for the AMD chip inside of PlayStation consoles! Their alternative to paying Microsoft for the chip would be to develop a new PlayStation platform, discontinuing current consoles and turning to Intel, NVIDIA or some other computer technology company.

This is definitely an interesting rumor, one that poses to be very beneficial to Microsoft if true.

[Kitguru]