Fresh Chips, Renovated Buyouts
Advanced Micro Devices launches a four-processor server chip. Kohlberg Kravis Roberts likely to agree to concessions to salvage its $26 billion leveraged buyout of First Data Corp.
NEWS AT A GLANCE
A new day for AMD
No. 2 computer chip maker Advanced Micro Devices is launching a four-processor server chip today, its first major microprocessor upgrade in four years. AMD is hoping the high-performance chip will help it make up lost ground against much larger rival Intel. (AP in Yahoo! Finance) Intel released a quad-core processor almost a year ago, helping it win back market share from AMD. “This will be a big step forward for AMD because they now have a shot,” said Nathan Brookwood at consultancy Insight 64. “This is AMD’s chance to get back into the game.” (Los Angeles Times, free registration required)
KKR willing to deal
Private equity firm Kohlberg Kravis Roberts will likely agree to concessions to salvage its $26 billion leveraged buyout of payment processor First Data Corp., The Wall Street Journal reports this morning. KKR and other buyers are scrambling to save deals as underwriters get squeamish because of the credit crunch. (Reuters) As investors become unwilling to buy in, banks and business need to refinance at least $120 billion in commercial paper outside the U.S. in the next week. (The Wall Street Journal) “This could be a pivotal seven to 10 days,” said Deutsche Bank analyst Jim Reid. (Bloomberg)
Philips reorganizes, ups forecast
Consumer electronics giant Royal Philips NV said it will reorganize into three units by 2008, in a bid to boost profits. The restructuring includes combining its consumer electronics, appliances, and personal care sections into a “consumer lifestyle” group. The other two divisions will be lighting and health care. Philips said the streamlining will help it double its operating earnings by 2010. (MarketWatch) “This confirms the assumption that they’re working very hard steering the company to more growth,” says Pieter Wind at ING Groep in Amsterdam. (Bloomberg)
Much ado about Hulu
After months of speculation, NBC Universal and News Corp. unveiled their new video-sharing Web site—and its name: Hulu. NBC said it had cleared the name with its lawyers, but a small Internet company in North Carolina sued, saying Hulu was an attempt to infringe on its good name, Lulu Enterprises. Bloggers and analysts were less than impressed with the name, too. “The communication revolution is finally here and its name is Hulu?” asks media professor Robert Thompson. “Seriously?” (The New York Times, free registration required)
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