Microsoft might absorb AMD

For months now Microsoft has been rumored to have been making a move to acquire chip maker Advanced Micro Devices (AMD). More recently on Friday shares of AMD spiked as much as 13% after reports circulated that Microsoft was already holding serious negotiations to work out an acquisition agreement with AMD.

AMD currently has a total market capitalization of only $1.57 billion. Considering that Microsoft has cash reserves of $5.6 billion, excluding short term investments, the price comes at...

Microsoft might absorb AMD