AMD’s quarterly report gave to understand that the company was not doing as well as they wished. Trying to reduce the expenses AMD decided to have more processors made in third-party production facilities and sell more licenses for their intellectual property. However, besides that there were also purely financial means of resolving the crisis.
Advanced Micro Devices today announced the pricing of $2 billion aggregate principal amount of 6.00% Convertible Senior Notes due 2015 in a private placement to qualified institutional buyers. It will allow the company to gain additional financial means. AMD announced it will sell $1.8 billion worth of convertible notes, giving buyers a 30-day option to buy up to an additional $400 million in notes to cover any over-allotments. These actions will definitely put an end to rumors that large AMD stock options may be purchased by big investment agencies or other companies. Hopefully these measures will help AMD improve the situation.
You can check out the official press release here.
Comments currently: 1
Discussion started: 04/27/07 11:03:19 PM
Latest comment: 04/27/07 11:03:19 PM
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Buying ATI was a dumb move, and it might be their last. Even though AMD couldn't afford nvidia, they could have operated separately as a joint company. They should have merged with nvidia, but Jen-Hsun Huang and Hector Ruiz have big egos, and weren't willing to negotiate. That would have been the greatest marriage in computer history. Then Intel could acquire ATI, and we would have the best competition for the market. Now it's all doomed to hell, dumb move AMD.
[Posted by: Idiotic Fool | Date: 04/27/07 11:03:19 PM]
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