Wednesday, November 28th 2012
![AMD](https://tpucdn.com/images/news/amd-v1739213381396.png)
AMD Plans to Sell and Lease-Back its Austin Campus
In an effort to raise cash in crunch-time, AMD plans to sell its Austin Texas campus (aka "Lone Star Campus") for around $150M to $200M. The company would then lease the campus back for 12 to 15 years. The 58-acre campus was built for at a cost of an estimated $270 million, and opened in 2008. Company spokesman Drew Prairie, in a statement to Reuters said "There are favorable economic conditions in the part of Austin where the campus is located," adding "Contingent on finding an investor who wants to do a multiyear lease-back, it's a good opportunity for us to unlock the value of the real estate to fund operations."
Sources:
Reuters, The Verge
33 Comments on AMD Plans to Sell and Lease-Back its Austin Campus
I like AMD, and I don't want them to struggle like this :(
Gimmie a few more yrs and this town of 3000 people will all be running AMD's Muhahahahhaa :laugh:
"AMDs run hot and don't perform" Says the clowns trying to sell pentium 3s and 4s :shadedshu
Today is a bit different though, the new Intel CPU's are pretty good in both those areas now so, what can ya do? :ohwell:
The designs aren't really flawed (plenty of things need fixed in BD but), it's all execution problems.
Add on the Juggernaut still using coercion and billions of dollars of "marketing" money and you have a recipe for an impending disaster.
There's more to it than that (like bad management period lol), but every time what it comes down to is execution with themselves and partners.
Raising capital? The property is already on the balance sheet of AMD and therefore is capital already. What you mean is convert a capital asset into cash... because AMD is desperately short of cash. Why? For 3 reasons: 1) Not enough income, 2) Costs too high, 3) Banks are calling in loans and not making new loans Companies have not just started doing this. This financial strategy started in the 80's. You do it for one of six reasons: 1) You have to sell your capital assets for cash because you are running out of cash, and nobody will give you cash, or 2) You believe the property market is going to fall, so you sell now to buyers who are still ready to buy, or 3) You are playing a financial game through your accountants... to window dress your accounts, to show higher liquidity on your balance sheet, reduce your debts, show higher RoE, 4) A tax strategy, 5) Your cost of borrowing (loan interest rate) has gone up, and you can't afford to service more loans, so you don't take any more loans, but sell your assets to raise cash, and FINALLY 6) Your investment banker or real estate advisor encouraged you to do it... property transactions mean a BIG TRANSFER in money and commissions... and just like lawyers... there is always a vested interest.
i had this friend who i was pressurising to buy a amd setup (he doesnt know english, and knows nothing about computers)
so he went to a fool, and they bought a i5 2600K. i was like wtf.
AMD will be fine, all the next gen consoles are AMD powered, the new chips are selling from what I understand. 8000 series GPUs around the corner....AMD will pull through its just a matter of time.