Microsoft has had talks with AMD over a potential acquisition according to a report.
A source who is “familiar with the matter” spoke with KitGuru that Microsoft had contacted the chip manufacturer a few months ago to start talks. It is unknown whether the talks would continue or lead to a successful buyout.
The acquisition of AMD by Microsoft isn’t outside the realms of possibility given AMD’s $1.81 billion value and Microsoft’s cash pile (an estimated $95.3 billion) being more than enough to carry out the purchase.
AMD graphics chips are used in Microsoft’s Xbox One as well in their console rival, Sony’s PlayStation 4.
Analysts currently estimate that Microsoft pays AMD $100 per Xbox One, at 12.6 million units sold that means Microsoft has already paid AMD approximately $1.26 billion so the buy out could bring down Microsoft’s costs for the Xbox One as well as tapping in to the PC, tablet and phone hardware market at the same time.
Neither Microsoft or AMD commented on the report.