AMD to take on nearly £1 billion in new debt

New credit to help pay off ATI obligations

AMD's recent profitability woes have been well reported and digested by now. The company's long-term prospects are closely tied to its upcoming quad-core Barcelona architecture, new generations of the ATI video technology it acquired last year and ultimately, what the company hopes will be a successful and beneficial merging of the AMD and ATI design resources to create an entirely new generation of computing devices.

In the short-term, however, the company simply needs cash on hand, and has moved to secure it with an announcement that it will issue as much as $1.8 billion of debt. Roughly one-quarter of the amount raised will go towards debt incurred in the multi-billion dollar buyout of ATI. The company lost over $600 million in 1Q 2007 as Intel's desktop and server products have regained coveted market share from its chief x86 rival.

The last time AMD was on the ropes was the late 1990s, when the company's K6 CPU products badly lagged Intel's Pentium line in performance and market penetration. The Athlon substantially leveled the playing field, and not coincidentally sparked the clock speed race in earnest on the desktop. Although industry watchers are not, by and large, speculating about the demise of the company the same way they did before the Athlon launch, some have openly questioned whether the company may face a more significant restructuring or buyout in the months ahead.

Featured Resources

How inkjet can transform your business

Get more out of your business by investing in the right printing technology

Download now

Journey to a modern workplace with Office 365: which tools and when?

A guide to how Office 365 builds a modern workplace

Download now

Modernise and transform your sales organisation

Learn how a modernised sales process can drive your business

Download now

Your guide to managing cloud transformation risk

Realise the benefits. Mitigate the risks

Download now

Most Popular


How to use Chromecast without Wi-Fi

5 Feb 2020

The top ten password-cracking techniques used by hackers

10 Feb 2020
operating systems

How to fix a stuck Windows 10 update

12 Feb 2020
Microsoft Windows

Windows 7 bug blocks users from shutting down their PCs

10 Feb 2020