Today: Microsoft sells a Silicon Valley subsidiary, and reports that it will use AMD chips in new Xbox send Sunnyvale chipmaker up 13 percent. Also: Alcoa, J.C. Penney and Gilead make after-hours moves, Apple (AAPL) gains in regular trading.

Microsoft sells valley offshoot, AMD may be in Xbox

Microsoft is one of the largest U.S. technology companies based outside Silicon Valley, but its reach can certainly stretch to the Bay Area from Washington, as it did twice Monday.

The Microsoft logo is seen at their offices in Bucharest March 20, 2013.  REUTERS/Bogdan Cristel
The Microsoft logo is seen at their offices in Bucharest March 20, 2013. REUTERS/Bogdan Cristel (BOGDAN CRISTEL)

Microsoft, which recently sold its advertising-technology division to Facebook, unloaded another subsidiary Monday, this one located in Mountain View. Mediaroom, a remnant of the old WebTV company that currently makes software that helps AT&T and other companies pump cable signals through telephone wires, was sold to Ericsson,