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Print 35 comment(s) - last by Chocobollz.. on Dec 11 at 1:20 AM

AMD will now own about 34.2% of the spinoff

To say it has been a tough year for the computer industry would be an understatement. AMD has been particularly hard hit, despite being the second largest chipmaker around.

In October, AMD announced that it would be spinning off its chip making facilities into a different company with AMD holding 44.4% of the new chip making company. The spin off resulted in a suit brought against AMD by rival chipmaker Intel over alleged license violations caused by the spinoff of AMD's processor making arm.

AMD announced this week that in an effort to reduce its manufacturing costs and adjust to the current state of the economy it would own even less than the previously noted 44.4% of the chip making spinoff. The majority owner of the spun off chip making division was the Abu Dhabi-based Advanced Technology Investment Company (ATIC) and a minority owner was Mubadala Development.

Amendments between AMD and ATIC will have AMD owning 34.2% of the chip making arm and ATIC grabbing 65.8% of the Foundry. An AMD representative said the sale was due to "changing economic times." AMD is fighting for its survival in the face of falling profits and increased competition. AMD announced this week that it was cutting revenue projections by 25% for Q4 2008.

Other amendments between the owners of the Foundry include a restructured agreement that allows Mubadala to purchase 58 million shares of AMD common stock at a revised purchase price equal to the lower of average closing price per share on the NYSE during the 20 trading days prior to and including December 12, 2008; or the average closing price per share of AMD common stock on the NYSE during the 20 trading days prior to the transaction close date.

AMD released a statement saying, "All other material economic terms of the transaction agreements remain unchanged. ATIC will still invest $2.1 billion to purchase its stake in the Foundry Company, of which it will invest $1.4 billion directly in the new entity and will pay $700 million to AMD."



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RE: My prediction...
By TMV192 on 12/9/2008 1:48:43 PM , Rating: -1
I have no idea what you are saying, IP stands for internet protocol, AMD used to make their own chipsets, but stopped, and now they are made by their purchased ATi Xpress branch, AGP is a defunct graphics interface, i dont know what M/Bs is, maybe you mean motherboards, which they will not, they don't even own fabs anymore (even ATi's I think have been sold) let alone factories for motherboards, they make reference boards for new chipsets once in a while, but never for sale


RE: My prediction...
By cscpianoman on 12/9/2008 1:59:59 PM , Rating: 3
It can also stand for Intellectual Property, In Progress or In Person. It all depends on context...


RE: My prediction...
By Clauzii on 12/9/2008 9:00:53 PM , Rating: 2
Maybe he was just performing a Ion Plating.

http://en.wikipedia.org/wiki/Ion_plating


RE: My prediction...
By TMV192 on 12/10/2008 12:01:05 AM , Rating: 1
what did I say to get a -1 rating?
just cause I was wrong about IP?


RE: My prediction...
By Chocobollz on 12/11/2008 1:20:51 AM , Rating: 2
Don't worry about the ratings, you're not Playstation Three anyway :-)


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