AMD's Big Announcement Today - becoming "2 companies"

[apoppin]

i am shocked this is not in Video

i posted this on my own site yesterday as AMD is becoming "asset lite"
[i am not allowed to link to it; look under 'news' in my sig]

http://biz.yahoo.com/bw/081006/20081006006639.html?.v=1
http://online.wsj.com/article/...?mod=yahoo_hs&ru=yahoo
http://www.cnbc.com/id/2705796...|quote|text|&par=yahoo
http://www.bloomberg.com/apps/...%3AUS&sid=axKo70pBepvE


http://www.dailytech.com/article.aspx?newsid=13139

Today AMD announced a shocking decision that will rock the computer industry -- in order to try to stay competitive, it is splitting in two. From the ashes of AMD will rise two companies. One will design chips and keep the brand name. The other, officially named the Foundry Company, will manufacture chips. The two companies will work closely together, but be independent.

The move also came with good news -- two Abu Dhabi have elected to inject at least $5.7B USD into the pair of companies. Most of this money will go to the Foundry Company, which will use it to build a new factory in Albany, N.Y., and to upgrade its Dresden, Germany factory.

AMD retains a 44.4 percent stake in the new company. The majority ownership belongs to Advanced Technology Investment Company. Advanced Technology, a company created by Abu Dhabi's wealthy government, has promised immediate investment of $2.1B USD into the pair. It says it will follow this with an additional investment that could be anywhere from $3.6B to $6B USD. Despite the majority stake, Advanced Technolo

While we do allow business discussion, this matter is not video related since it does not affect AMD's video operations (only their CPU operations). You can take this up in the CPU forum. And I remind everyone that this is NOT P&N, leave the politics at the door.

-ViRGE

 

[SunnyD]

I hope this doesn't affect the build quality of their chips. AMD has been constantly updating their fabs in the consortium with IBM for new tech - hopefully they'll retain enough influence to keep ATIC updating it.

 

[Fox5]

Seems strange to do, considering $5.7 billion could have bought AMD wholesale.

 

[apoppin]

Originally posted by: Fox5
Seems strange to do, considering $5.7 billion could have bought AMD wholesale.

it is an expansion .. they are building a NEW NY fab

one company designs chips

the other builds them

imagine Nvidia GPUs being eventually fabbed by AMD
:Q

 

[Creig]

Apparently they got the idea from AnandTech when it spun off DailyTech as its own "independent" site.

 

[unr3al]

The extra fab and the extra money is a great step forward; if it works as intended this could indeed be a great idea. But if it flops... They're taking a colossal risk here. Just shows in what kind of trouble they really are! I really hope everything works out for the best. Apart from being an AMD fanatic, I have always liked competition. A sad day it will be if Intel was to swallow up both AMD and Intel...

 

[Zebo]

Allah is most merciful!

I'll be surprised if congress lets this fly.. Makes my choices much easier ... Intel + nVidia forever.

Al Reuters has the most details

 

[coolpurplefan]

This won't cause a problem with their contract with Intel?

 

[Schadenfroh]

Originally posted by: Fox5
Seems strange to do, considering $5.7 billion could have bought AMD wholesale.

IIRC (big if I recall correctly), if someone buys AMD, the company no longer has an x86 license.

 

[apoppin]

Originally posted by: coolpurplefan
This won't cause a problem with their contract with Intel?

evidently not .. they are still "AMD" .. now they have The Foundry which will try and compete ..
.. heck it is a tough super-competitive business; but now they have oil money to play with

it is strange that they planned it over a year and then totally botched their marketing of it when they had they spotlight on the international news stage .. they looked disorganized; i think they should have postponed their announcement till they got their PR working. it looked rushed and awkward.

 

[nRollo]

Originally posted by: Creig
Apparently they got the idea from AnandTech when it spun off DailyTech as its own "independent" site.

I didn't know AnandTech had to sell DailyTech to remain in business.

This was a move born of financial desparation, nothing more.

A good analogy would be Ford selling their factories to the Middle East and subcontracting them to build F-150s..

I don't see this as a "win" for American business or computer gaming other than that it allows AMD to remain in business a while longer and try to regain profitability from a little better financial position.

 

[WelshBloke]

Originally posted by: nRollo

Originally posted by: Creig
Apparently they got the idea from AnandTech when it spun off DailyTech as its own "independent" site.

I didn't know AnandTech had to sell DailyTech to remain in business.

This was a move born of financial desparation, nothing more.

A good analogy would be Ford selling their factories to the Middle East and subcontracting them to build F-150s..

I don't see this as a "win" for American business or computer gaming other than that it allows AMD to remain in business a while longer and try to regain profitability from a little better financial position.

That was a bizzare post.

AMD have pretty much got rid of their debts in this deal and hooked some investors with serious money. The way the global economy is looking at the moment I would think most companies would like a $6 billion injection of cash.

 

[nRollo]

Originally posted by: WelshBloke

Originally posted by: nRollo

Originally posted by: Creig
Apparently they got the idea from AnandTech when it spun off DailyTech as its own "independent" site.

I didn't know AnandTech had to sell DailyTech to remain in business.

This was a move born of financial desparation, nothing more.

A good analogy would be Ford selling their factories to the Middle East and subcontracting them to build F-150s..

I don't see this as a "win" for American business or computer gaming other than that it allows AMD to remain in business a while longer and try to regain profitability from a little better financial position.

That was a bizzare post.

AMD have pretty much got rid of their debts in this deal and hooked some investors with serious money. The way the global economy is looking at the moment I would think most companies would like a $6 billion injection of cash.

I agree this is a good thing in terms of AMDs survival.

There's also something to be said for having some American companies owned by Americans, it's always somewhat sad to ownership diluted (or outright controlled) by foreign interests.

Also sad to see AMD reduced to this- I bought AMD CPUs for many years, and even run a Phenom in one PC now.

 

[WelshBloke]

Originally posted by: nRollo

Originally posted by: WelshBloke

Originally posted by: nRollo

Originally posted by: Creig
Apparently they got the idea from AnandTech when it spun off DailyTech as its own "independent" site.

I didn't know AnandTech had to sell DailyTech to remain in business.

This was a move born of financial desparation, nothing more.

A good analogy would be Ford selling their factories to the Middle East and subcontracting them to build F-150s..

I don't see this as a "win" for American business or computer gaming other than that it allows AMD to remain in business a while longer and try to regain profitability from a little better financial position.

That was a bizzare post.

AMD have pretty much got rid of their debts in this deal and hooked some investors with serious money. The way the global economy is looking at the moment I would think most companies would like a $6 billion injection of cash.

I agree this is a good thing in terms of AMDs survival.

There's also something to be said for having some American companies owned by Americans, it's always somewhat sad to ownership diluted (or outright controlled) by foreign interests.

Also sad to see AMD reduced to this- I bought AMD CPUs for many years, and even run a Phenom in one PC now.

Why?

What American is going to lose his job over this?

 

[Keysplayr]

America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

 

[WelshBloke]

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

 

[apoppin]

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

i was cautioned by our resident mods NOT to bring in political references into our threads here.


but please .. don't go off on the insults to each other

AMD has survived .. their execution indefinitely postponed by an infusion of foreign investment capital - and they retain control of their own company!
- it's arguably better than asking the US taxpayers to bail them out - which would never happen anyway

as their other choice was probably going out of business, AMD made the right one imo

 

[Wreckage]

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

It's in reference to AMD becoming a Middle Eastern company.

Which may raise "security" concerns in Congress. So I wonder if this will require some sort of Governmental blessing.

Either way this is the beginning of the end for AMD as we knew and loved them.

 

[WelshBloke]

Originally posted by: Wreckage

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

It's in reference to AMD becoming a Middle Eastern company.

Which may raise "security" concerns in Congress. So I wonder if this will require some sort of Governmental blessing.

Either way this is the beginning of the end for AMD as we knew and loved them.

In what way is AMD a 'Middle eastern company' now.

What '"security" concerns'? Do you think the evil Arabs will set the Gpu's to explode when in American territory?

Why is this 'the end for AMD as we know it'? Nvidia operates without fabs and I don't see you proclaiming their death every other post?

 

[Wreckage]

Originally posted by: WelshBloke

In what way is AMD a 'Middle eastern company' now.

They are taking an ever larger stake in the company.

What '"security" concerns'? Do you think the evil Arabs will set the Gpu's to explode when in American territory?

The Government often get's involved when any foreign company takes a large stake in a major US corporation. Especially a technology company that may supply the US Government.

Why is this 'the end for AMD as we know it'? Nvidia operates without fabs and I don't see you proclaiming their death every other post?

NVIDIA does not make CPUs and does not compete with a very large succesful company which is still happily maintaining their own fabs. Slicing the company in 2 is merely to stay alive not to really progress.

 

[Keysplayr]

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

Maybe if you'd of thought about it a bit, and read other posts in this thread, you might have possibly understood the context of my post.

And secondly, what is your problem? Did you get up on the side of the bed that had the broken beer bottle on the floor this morning?

 

[Keysplayr]

Originally posted by: WelshBloke

Originally posted by: Wreckage

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

It's in reference to AMD becoming a Middle Eastern company.

Which may raise "security" concerns in Congress. So I wonder if this will require some sort of Governmental blessing.

Either way this is the beginning of the end for AMD as we knew and loved them.

In what way is AMD a 'Middle eastern company' now.

What '"security" concerns'? Do you think the evil Arabs will set the Gpu's to explode when in American territory?

Why is this 'the end for AMD as we know it'? Nvidia operates without fabs and I don't see you proclaiming their death every other post?

You don't want to hear any of this, do you.

 

[WelshBloke]

They are taking an ever larger stake in the company.

So not in 'they are moving jobs to the ME' or 'They are only going to sell in the ME'? Is your main problem here the fact that investors are from the ME? Do you have an approved list of people to do business with? Do you not believe in free markets?

The Government often get's involved when any foreign company takes a large stake in a major US corporation. Especially a technology company that may supply the US Government.

Given that your economy is in the shitter at the moment I feel confident this will pass.

NVIDIA does not make CPUs and does not compete with a very large succesful company which is still happily maintaining their own fabs. Slicing the company in 2 is merely to stay alive not to really progress.

Nvidia very much competes with (or is trying to) Intel.

 

[WelshBloke]

Originally posted by: keysplayr2003

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

Maybe if you'd of thought about it a bit, and read other posts in this thread, you might have possibly understood the context of my post.

And secondly, what is your problem? Did you get up on the side of the bed that had the broken beer bottle on the floor this morning?

See, going on context I used more than just this thread, I used your posting history.

Which kind off makes you look a lot like a troll when it comes to subjects involving AMD/ATI.

Which really is pretty sad for a mod.

 

[Keysplayr]

Originally posted by: WelshBloke

Originally posted by: keysplayr2003

Originally posted by: WelshBloke

Originally posted by: keysplayr2003
America is being sold off bit by bit. Did you know that about 11% of the buildings in NYC are owned by Japan based corporations? This includes existing buildings as well as planned construction of new ones. Wild eh?

What the hell is this to do with video cards?

Or did your NV PR alarm go off and you couldnt think of anything else to write.

Maybe if you'd of thought about it a bit, and read other posts in this thread, you might have possibly understood the context of my post.

And secondly, what is your problem? Did you get up on the side of the bed that had the broken beer bottle on the floor this morning?

See, going on context I used more than just this thread, I used your posting history.

Which kind off makes you look a lot like a troll when it comes to subjects involving AMD/ATI.

Which really is pretty sad for a mod.

Oh darn. Looks like you chose to attack without cause here. Out of left field. Very weird.
Any mods around?