About two months ago, AMD made a deal with the Abu Dhabi investment people. Well, those folks just struck a harder deal.
Basically, rather than pay AMD $314 million for 58 million shares of new AMD stock, the Mubadala folks will pay quite a bit less, probably not more than around $130 million, could be less than that if the stock price goes down more by the time the deal is finalized. Additionally, while the ATIC people will still be laying out the money they promised, they’re going to end up owning 65% rather than 55% of the new Foundry Company.
Essentially, the A.D.ers saved themselves about $200 million and got more Foundry Company for the rest of their money. Guess AMD had no choice but to accept the new conditions. This ought to tell you who the boss is in this new arrangement.