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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: Why not even just 25%?
By kilkennycat on 12/10/2008 12:57:36 AM , Rating: 1
I look at it this way, If I can save 100 bucks on a CPU purchase by going with a slower AMD chip, I can spend that 100 bucks on a faster GPU and ultimately get more performance in what I use my system for and that would be gaming.

Really, then maybe you should look at the Recommended Specs for the PC version of Grand Theft Auto 4.

Recommended system requirements
• Operating system: Windows XP SP3 or Windows Vista SP1
• Processor: Intel Core 2 QUAD 2.4 GHz / AMD Phenom X3 2.1 GHz
• RAM: 2.0 GiByte (XP) / 2.5 GiByte (Vista)
• Hard drive: 18 GiByte
• Graphics card: Geforce 8600 with 512 MiByte / Radeon HD 3870
• Internet

Cheesy PC ports from Xbox360/PS3 console titles (like this one) make use of as many cores that they can find, thanks to the multicore architecture ( minimum 3 cores..) of these consoles, plus zero attempt by the developers to optimize the code for fewer but far more powerful CPU cores. With its cartoon-style graphics, the GPU pretty well dawdles while the game pushing the available CPU cores places the ultimate limit on the game's "frame-rate" The HD3870 recommendation above is an overkill except maybe for those with display sizes well in excess of 1920x1080.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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