AMD sells, rents back Austin, TX corporate headquarters
Chipmaker AMD revealed on Tuesday that is selling and leasing back the Austin, TX campus to generate a quick $164 million in cash to prop up the company. The company expected <a href="http://macnn.com/rd/280885==http://www.electronista.com/articles/12/11/27/transaction.should.generate.over.100.million.for.m anufacturer/" rel='nofollow'>in November</a> that it would be able to sell the 58-acre site for between $150 and $200 million. AMD has done this twice before -- selling a Sunnyvale, CA site, as well as another site near Toronto, Ontario.<br />
AMD is in a period of cost-cutting to stem the tide of red ink. The last year has seen AMD <a href="http://macnn.com/rd/274052==http://www.electronista.com/articles/12/10/18/move.expected.to.stem.the.tide.of.red.ink.from.eco nomy.tablets/" rel='nofollow'>lay off 15 percent of its workforce</a>, <a href="http://macnn.com/rd/274053==http://www.electronista.com/articles/12/09/17/seifert.leaves.after.three.years.of.service.pursui ng.ceo.opportunity/" rel='nofollow'> lose ex-CEO and then-CFO Thomas Seifert</a>, and endure a loss of $157 million. The company is suffering from the "post-PC" era in personal computing, and the shift away from desktop computers to a more tablet-oriented ecosystem.
Analysts have been skeptical of AMD's chances, with one notably saying that AMD's decline is like "watching a slow-motion train wreck." The manufacturer may just need to buy some time -- it has revealed that it is producing parts for the PlayStation 4, is deploying the <a href="http://macnn.com/rd/280886==http://www.electronista.com/articles/13/01/09/chips.aimed.at.portable.devices/" rel='nofollow'>Temash</a> system-on-a-chip, and has rolled out a new line of Radeon graphic processors in the last two months.
|All times are GMT -4. The time now is 09:16 AM.||
Copyright © 2005-2007 MacNN. All rights reserved.
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2016, vBulletin Solutions, Inc.