Rumor: AMD in buyout talks with Microsoft

Jeeves, fetch me the sea salt. Fudzilla is rumor-reporting that Microsoft is eyeing AMD as a potential buyout. Personally, all I can say is I've had worse ideas. According to the site, the companies "have been in talks for a while". The deal arguably makes sense for Microsoft, since AMD supplies the APUs for the Xbox One console. Fudzilla suggests Microsoft could be looking to use AMD's APUs for its iPad Pro Surface lineup, too.

As to how an acquisition might play out, the site thinks that AMD could be acquired either whole or in pieces. Fudzilla's reasoning is that Raja Koduri's nomination as the head of AMD's Visual Computing group means that the division could become part of Microsoft, after which it would license graphics technology to whatever remains of AMD for use in APUs. We don't see why Microsoft wouldn't swallow the company whole, though.

Last but not least, according to "well-informed industry sources," Intel could also be a potential buyer, though that particular rumor has been circling around forever.

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