Journalists are sometimes described as mushrooms – both being kept in the dark much of the time – but even a hint of light can be revealing.
Advanced Micro Devices’ (AMD) agreed purchase of server maker SeaMicro for $334m is a case where a bit more light would be helpful. But its intriguing enough mainly for the speculation about which listed companies took a stake in SeaMicro at its $20m series D round in July last year.
If AMD used its Strategic Ventures Fund set up in 2010 to take a stake as a way of seeing SeaMicro’s potential and helping lead it to a purchase then the corporate venturing team led by Ray Schuder would deserve a pat on the back. AMD’s purchase of SeaMicro gives it a useful product – low-power computer servers – to market to its large clients.
The sale of SeaMicro could be a blow to chip peer Intel, which earlier in the year said its chips would power future servers. The intriguing element is if Intel Capital had been a backer of the D round. (AMD and Intel were unavailable to comment.)
It certainly could have been a strategic investment – as well as a good financial return – for Intel or whichever company invested and shows how a potentially joined up acqusitions and corporate venturing strategy could pay dividends in skilled hands.