Paul, here's a post from the Mod AMD Thread about Intel's Level One acquisition not going too well according to Maverick.
My opinion is that Intel has a manufacturing culture, not a network comm culture. I believe the key question in all of this is, are the network and comm businesses mature enough that they have actually entered a manufacturing cultural phase? If they have not, then the culture could be an issue, especially in today's hot market where good network comm engineers are the most desired talent. Regards, Amy J
Message 14581962
To: f.simons who wrote (13926)
From: Maverick Saturday, Oct 14, 2000 3:08 PM ET
Reply # of 13971
INTC's attempt to diversify has fallen flat on their face. Many acquisitions hav gone awry. Level One was decimated. INTC doesn't treat its engrs well at all nor does it issue more stock options to keep acquired engrs. In the end INTC acquired buildings, machines, not engr talents. After a while, the St will ask ROI from those NW, communication division, INTC will have nothing to show for. INTC will be beaten down even more. This is a well know fatc in the Si Valley. If you don't believe me just ask those who work or haved worked for INTC. I defy you to prove this wrong. Part of reason INTC PE is high despite missteps is they use the "communication" and "networking" labels. After a few qtr w/ nothing to show for those divisions INTC will be beaten up justlike everybody else who miss-executes.
INTC has fallen so far behind in communication that it had to resort to law suite to slow down competitors and prevent competitors from luring away its engr.
Had AMD mis-execute like that,its PE would have been 2 - 5, not 40 - 55. |
