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To: Barry Grossman who wrote (50705)	3/17/1998 3:02:00 PM
From: Paul Engel	Respond to of 186894

Barry - Re: "I bumped into my AMD friend last night and it was quite interesting." Thanks for the update. I hope you offered your friend a Cigar for his valuable information. Re: " a possibility/result down the road may be an outright purchase of AMD by IBM. I poo-pooed the idea but he thinks it could happen. He seemed to think that this was a very real possibility." The Cyrix - NSM buy out should serve as a case study. Take a healthy company, purchase a struggling competitor to Intel - which is losing money - and what do you get? You get a merged company pulled down by that competitor as it sucks resources - financial & manpower - out of the healthy company. AMD and Cyrix shareholders think this "buy-out" deal is an automatic launch into success-land. Instead, it is proving to be an Albatross around the neck of the buyer. Paul

To: Barry Grossman who wrote (50705)	3/17/1998 6:14:00 PM
From: Mike Wong	Read Replies (1) \| Respond to of 186894

Re: "I bumped into my AMD friend ... " Somebody (I believe it was Gates) once said that if you (Borland) do not have as many chips as the other guy (MS) when playing poker, you should not raise the ante (drop price to gain share). Seems like we have the same situation here with AMD and Cyrix. Their development, production, administrative, and marketing cost has to be spread over fewer units. Yet they try to buy market share with lower price. If they were to start posing a threat to Intel, all Intel has to do is to drop their price. Yes, Intel's profits will decrease, but they will not go bankrupt. On the other hand, AMD, and Cyrix, with their already thin margins, will have no room to go lower. Their only option is fold their hand, or sell. That's just simple economics. If they sell, then a company that is big enough to buy AMD will be too big to have the culture to turn out products at the frantic pace AMD does today. You can bet on it. The engineers at AMD and Cyrix have to be very, very smart, and work back breaking hours, to be able to match Intel's microcode and performance (??) within months after Intel announces a new processor. It is a real pity that they work for companies where the business model is doomed to failure.

To: Barry Grossman who wrote (50705)	3/17/1998 8:20:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Barry, Re: "He said that he thinks that AMD has missed their "window of opportunity" and that a possibility/result down the road may be an outright purchase of AMD by IBM." I wonder why in the world a company that already has what is arguably the most advanced R&D, and manufacturing, chip division in the world (IBM) would be interested in one with obvious problems (AMD). What would AMD bring to the table? Wouldn't IBM eventually scuttle AMD, unless, maybe they want the K6. This is making me laugh here, real time, big time. Not to shoot the messenger,Barry, but I have a lot of trouble with this IBM buys out AMD thing. Tony