medi01May I ask how much a burden 2$ billion debt actually is?
What is the interest rate? Let's be generous here, 10%?
So 200 million $ per year blahblahblah etc. etc..

You seem to have a fundamental lack of comprehension of the argument. AMD borrowed $2bn AND absorbed $2.63bn in write-downs. In effect AMD literally threw away over $2bn in cash and have been paying for the privilege of doing so. Which is why AMD's debt ballooned in 2006-2007...

medi01Those annual 200 million bucks of a burden forced AMD to quit EXTREMELY EXPENSIVE fab business, really?

It wasn't "200 million bucks". With AMD's foundry business already in debt, AMD couldn't support both it and the $2bn PLUS added write downs that the ATI acquisition imposed on the company. Do you think it is totally unconnected that AMD's debt burden dropped after it began selling its foundry business to ATIC between 2008-2010 with ATIC absorbing AMD's foundry debts?

medi01(ATI was profitable for the most of those years but let's ignore that) has "killed AMD"?

You have got be kidding. In 2005 ATI posted a meagre $16.9m gross profit on $2.2bn sales, and that is the highlight! ATI slashed warranties to keep them out of the red, and even then their market share and revenue outlook were grim before AMD bailed them out.

Feel free to preach your own brand of medi01nomics, but you'll find your church might be empty when the rest of the tech and financial world see things differently

Ironic, that I'm blamed for not comprehending the argument.

Let me put it into a single simple sentence for you guys: AMD being close to bankruptcy is a fact, the reason, why that happen, is a mere theory. With having to compete vs Intel being one nice alternative explanation.

It wasn't "200 million bucks".

Yes, it was likely less of a burden.

Fab business requires huge investments, there was no way AMD could compete on this with Intel. (much bigger TSMC and Samsung can't)

In 2005 ATI posted a meagre $16.9m gross profit on $2.2bn sales, and that is the highlight!

The first result on google:

AMD Graphics Division Financial Results:
2012 Q4
Revenue $326M
Operating Income $22M

Q4'2011
$382M
$27M

www.anandtech.com/show/6690/amd-q412-and-fy-2012-earnings-closing-out-a-rough-year-looking-towards-the-next


The only bit of AMD that is profitable now, is "semi custom", something that came out of ATI deal:

AMD Q3 2015 Enterprise, Embedded and Semi-Custom
Q3'2015
Revenue $637M
Income $84M

Q3'2014
Revenue $648M
Income $108M
www.anandtech.com/show/9722/amd-announces-fy-2015-q3-results-decreased-computing-and-graphics-sales-hurt-bottom-line

AND THERE IS NO WAY, no freaking matter what, that AMD could be competitive vs Intel in 28nm vs 14nm Fab scenario!!!

Serpent of Darknessfrom an astrologer or horoscope user's point of view, is empowered by the Zodiac Sign, Gemini.

How get companies so indebted? They get indebted because their executives need to earn more. A credit is taken as plus in yearly balance so we take a credit and raise the companies intake by some % points and we (executives) get a bonus. Astronomy is basically innocent. Nowadays there are sites which let you calculate the horoscope of entities like humans, states or companies. Investopedia

Executives find a nice way to spend the money in not needed factories or other important. Buying ATI was not such a good idea but someone was crucified?