Published in Processors
AMD to seek additional financing today
Exclusive: AMD feels the cash crunch
AMD will hold a special shareholder meeting on Monday the 16th at 10 AM eastern time and according to our well informed sources, one of the topics on the agenda is raising additional financing to maintain stable operations, as the company is going through a cash crunch.
Since selling a substantial part of AMD's tangible assets, like fabs in Germany, may negatively impact the company's debt holders, one of the financing alternatives is issuing additional equity. The reason is quite simple and obvious, AMD needs more cash and it needs it now.
AMD might get into serious trouble as the company is again going to post a larger than expected loss and that if it doesn't raise more cash, it might actually go out of business as soon as the end of the year.
This is by far the most difficult year for AMD and all eyes are on Barcelona as this can be the biggest success or the failure of AMD.
The situation resembles that of ATI four years ago, when RADEON 9700 pulled the company out of financial crisis. We all keep our fingers crossed for AMD right now, as the company has good people and good technology, but the timing and financial situation keeps the company on the edge.