AMD Selling Austin Texas Facility To Raise Cash
It’s never a good sign when a company is trying to raise money using strategies that don’t include selling its products for a profit, but that’s where AMD is these days. The chipmaker is reportedly looking to sell off its Austin, Texas facility to generate cash; the plan is apparently to lease the facility back from the new owner, whoever that might be.
AMD told Reuters that it hopes to get between $150 million and $200 million for the 58-acre property, closing a deal sometime before the end of Q2 2013. This isn’t the first time AMD has employed this strategy; the company has done the sell-and-lease-back dance with facilities in Toronto and California.
AMD's Austin campus
Although this is better news that the earlier rumor that AMD itself was up for sale, it’s not exactly what one would call “good news”, and it’s the latest in a string of disappointing headlines for the company, including layoffs, financial losses in the third quarter, and expected losses in Q4.
If AMD eventually goes under, it wouldn't just be terrible for the companies' employees and shareholders--it would be awful for the industry. Competition is healthy, and there are far too few players in the processor market to lose a giant like AMD.
AMD told Reuters that it hopes to get between $150 million and $200 million for the 58-acre property, closing a deal sometime before the end of Q2 2013. This isn’t the first time AMD has employed this strategy; the company has done the sell-and-lease-back dance with facilities in Toronto and California.
AMD's Austin campus
Although this is better news that the earlier rumor that AMD itself was up for sale, it’s not exactly what one would call “good news”, and it’s the latest in a string of disappointing headlines for the company, including layoffs, financial losses in the third quarter, and expected losses in Q4.
If AMD eventually goes under, it wouldn't just be terrible for the companies' employees and shareholders--it would be awful for the industry. Competition is healthy, and there are far too few players in the processor market to lose a giant like AMD.
