Rumors are circulating the internet after a report from Kitguru suggests that Microsoft is interested in acquiring AMD. The unnamed sources claimed that Microsoft approached AMD several months ago.
The key speculation is that both Xbox One and Playstation 4 run on AMD APU Processors. Microsoft pays AMD $100 for every unit sold which would amount to around $1.26 Billion. If Microsoft acquired AMD they would essentially be able to save billions and would be able to get some royalties from Sony thanks to the AMD APU used in the Playstation 4. Microsoft would also have the ability to create their own SoCs for tablets and smartphones. This could allow Microsoft to have one Operating System run on all devices.
To help fuel the rumors even more, Reuters has reported that AMD has hired a consulting firm to help decide how splitting off different divisions, or the company in half, would work.
Keep in mind that this is still a RUMOR and nothing has been confirmed by Microsoft nor AMD.