Report Suggests Microsoft Has Opened Talks To Acquire AMD

Microsoft has opened talks with hardware experts AMD – Advanced Micro Devices – in an attempt to acquire the computer processing and chip design company, according to a report published by KitGuru.

The outlet states that a source close to the negotiations has revealed that talk of a possible buy-out stretches back for a few months, with Microsoft eager to inject a new lease of life across its computer processing front for future Xbox devices. KitGuru estimates that AMD is currently valued at $1.81 million, and while the exact proposal is currently unknown, the acquisition would certainly benefit the Xbox giant.

For example, should this deal come to fruition, not only would it bolster Microsoft’s presence in the chip market, it would also mean that the company holds ownership to the AMD chips within both the Xbox One and PlayStation 4; opening up a potential scenario wherein Sony would be forced to offer a small licensing fee to utilize the tech. This would be similar to how Microsoft pays a small fraction to both Sony and the Blu-Ray Disc Association for license of the Blu-Ray drive installed in the Xbox One.

If this report is to be believed, AMD isn’t the only company that’s attracted Microsoft’s attention of late, considering that the Redmond-based publisher announced a partnership with Oculus Rift – one which will bundle together an Xbox One controller with every shipment of the VR device – earlier this month.

We’ll keep you up-to-date on this story as it develops. From what we understand, though, Microsoft isn’t the only company eyeing up AMD, with Samsung also reportedly circling a deal.