Advanced Micro Devices Inc. named president and COO Dirk Meyer (left) as its new chief executive.
Meyer succeeds Hector Ruiz (right), who will become executive chairman of AMD and chairman of the board. The announcement came late Thursday, about an hour after the chipmaker reported losses widened for
the second quarter -- more than analysts
expected.
The troubles have much to do with AMD's 2006 acquisition of ATI Technologies Inc., a power play meant to to help it catch Intel Corp. With video games, cell phones and computers requiring more speed and memory, and better graphics, AMD made a cash-heavy $5.6 billion acquisition of the graphics chip maker.
Integration has been tough. Our sister blog Tech Confidential reported earlier this month that AMD said it would take
$2.56 billion in charges against the deal. Charges included goodwill and intangible assets associated with its hand-held and digital television units, which it got from ATI. AMD said it's selling those units and classified them as "discontinued operations."
Add the debt burden from buying ATI -- which AMD now says is worth half of what it paid -- delayed product launches (the follow-up to its lucrative Opteron server chip was delayed 8 months) and a cash drain and you get a new CEO. One report notes that
AMD will have to craft a strategy to slash manufacturing expenses. --
Baz HiralalAMD changes CEO as turnaround pressure intensifiesIntegration trips up AMDMore ATI woes for AMD
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