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the ati acquisition might turn out to be the worst idea ever

H

hans007

Lifer
so i am a big financial news type, and have been following the amd slow bleed of death.


it turns out, that amd needs a ton of money to finish their fabs. you figure they could borrow some. but the kicker is apparently the loan they took out to buy ATI stipulates that if they create more shares of AMD (stock dilution) , borrow more money, or even sell assets they have to pay the 2.5 billion they borrowed for ATI FIRST!


so they cant even borrow money. WOW. buying ati could turn out to be the worst idea EVER.

so yeah, they are uh really screwed. unless someone just hands them 3 billion dollars in a big gym bag. i would love for them to come back, i really wishthey could just undo the ati deal. as they HAVE to catch up to intel in fabs just to have a fighting chance. I mean are we all not liking the super cheap chips right now? that ends if amd dies.
 
3 billion $ is 3000 metric tons (3 million kg), not counting packing materials.

So GYM bag won't be enough, hell, a fleet of TRUCKS will not be enough.
 
Originally posted by: MegaVovaN
3 billion $ is 3000 metric tons (3 million kg), not counting packing materials.

So GYM bag won't be enough, hell, a fleet of TRUCKS will not be enough.
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What, is that in $1 bills?
 
I dont believe it either, seems like they are not quite that desperate yet. just because they are losing some money dosent mean they are going under. im sure they would have to be aware of that and know how to deal with it.
 
hopefully their new cpus and gpus will come out and own nvidia (which shouldn't be too hard with the joke nvidia put out in the 8600 and 8500 series cards)
 
Originally posted by: Elias824
I dont believe it either, seems like they are not quite that desperate yet. just because they are losing some money dosent mean they are going under. im sure they would have to be aware of that and know how to deal with it.
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AMD basically lied to the whole financial community before xmas and told them that everything waws rosy.

so they sort of have a bad rep. But I think the main thing is, they are losing half a billion a quarter and have 1.2 billion in the bank and need to fund the fab upgrades and cant borrow anymoney.

that sounds real bad. I think they can probably squeak it out though, apparently if they issue more shares , half the procceeds they can spend, and only half has to go to paying the ati debt. It would just have to be a lot of shares and probably drive the stock price down a lot because of the share dilution.
 
I really hope AMD swings back, if they die then Intel will monopolize and then they will control the high prices for CPUs!!
 
I agree the ATI and AMD thing was a mistake. The more you diversify, the more complicated management becomes.

Historically we have relied on small companies for true innovation. The larger companies develop for the masses and the status quoe. The merger will prohibit innovation for both AMD and ATI.
 
ouch thats sad. yea intels really spamming out these new chips so fast its amazing. they even were able to make their old pentium 4 the dirt cheap value line to really piss on amd lol.crazy.

did amd really have enough money to pay for fabs anyways? aren't those hundreds of millions?
 
I don't know if it was such a bad idea. If they came out with some new motherboards with good quality integrated ATI graphics and perhaps a decent AMD processor integrated, I'd buy it in a heartbeat.
 
Originally posted by: bwatson283
belongs in the politcs/news forum.
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Indeed. I prefer to keep my industry/business speculation and my hardware discussion seperate.

My thoughts on the matter, however, are that AMD might cede Intel the CPU crown for another year or two and cruise along as the best value budget-PC maker while they get back to speed.
 
Well, this is interesting reading for me since I decided this would be a cool stock to trade on anticipated events. I mean, I wanted to buy ahead of R600, then sell on the news of it coming out and then buy again before they release Barcelona then sell when a run up on that occurs. Of course, I don't know if it's going to pan out or not. I'm a bad trader but I have enough experience that my ideas are becoming way clearer than they've ever been before.

The situation is complex because there are catalysts that can certainly make the stock go up although they are in such a bad situation right now. The fact they announced they are cutting costs and the news of these new technologies coming out...just think about it. AMD could very possibly have the best performing GPUs and CPUs in the coming months. That would make lots of people crap their pants real fast, including short sellers who'd get squeezed until they lose their houses.
 
Originally posted by: Roguestar
Originally posted by: bwatson283
belongs in the politcs/news forum.
Click to expand...

Indeed. I prefer to keep my industry/business speculation and my hardware discussion seperate.

My thoughts on the matter, however, are that AMD might cede Intel the CPU crown for another year or two and cruise along as the best value budget-PC maker while they get back to speed.
Click to expand...

problem is they aren't cruising at all in the value budget area anymore, intels really putting on the pressure there now
 
Originally posted by: coolpurplefan...just think about it. AMD could very possibly have the best performing GPUs and CPUs in the coming months.
Click to expand...


Kind of like 3dfx, just before they closed the doors.

 
Originally posted by: 0roo0roo
did amd really have enough money to pay for fabs anyways? aren't those hundreds of millions?
Click to expand...

More like THOUSANDS of millions! A new 300 mm Fab (a decent sized one anyway) cost in the 3.5 to 5 BILLION dollar range these days.

The kind of money it takes to play in this game these days is just CRAZY. And to think that the first IC parts were made with off the shelf photography equipment!
 
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