November 19, 2007

The end for AMD?

Selling just over eight per cent of the company for $622 million would not appear to be too bad for AMD this would value the company at around $7.7 billion, which is about right giving the current stock price etc.

But we are not looking at the big picture, AMD have not been doing to good recently in fact the have lost around $1.6 billion so far this year! And to make things even worse there would appear to be a slight debt problem of around $5.3 billion, those figures do not add up to a healthy business.

However the company the company does actually have some $2.2 billion in cash to play with, but never the less this is a tricky situation and if the financial loses continue to the end of the financial year thing will not to good at all.

Source [Extremetech]