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To: Home-Run who wrote (52316)	4/7/1998 2:44:00 PM
From: BelowTheCrowd	Respond to of 186894

With all the talk, this is some of the first RATIONAL analysis I've seen. Everybody seems to be so caught up in mergers lately, that nobody's thinking "Why would it make sense?" IBM can buy all they want from AMD WITHOUT owning them. If AMD goes away, they can offer more production capacity to Cyrix/NSM, IDTI and ohers then buy from them instead. And they continue to buy primarily from INTC. IBM's strategy is mostly focused on software these days. Using Java and a variety of thin clients (includng NetPCs and NCs) to make the underlying chipsets and architecture less important, and to increase the importance of overall systems integration capability -- their biggest strength. I fail to see how purchasing AMD fits in with that overall direction, especially since the upcoming Merced introduction means that AMD will NEVER get to be much of a player in the high-end or server markets where IBM makes much of their profits. Of course, I don't see why CITI/TRV makes financial sense either, but I believe that IBM are alot smarter than the ivory tower folks in New York. Maybe it's just me. mg