AMD writes-off another big chunk of ATI.
AMD is writing off another $880 million off its investment in ATI.
You might recall that AMD paid $5.4 billion for ATI a little less than two years ago. Add this $880 million to earlier writeoffs, and AMD has written off $2.5 billion of that $5.4 billion.
What is this like? This is like someone buying a $500,000 house two years ago with your life savings of $200,000 and a mortgage covering the rest. Two years later, you find out that the house is now worth only $270,000, so you now owe more on the mortgage than the house is worth.
And now there are signs a recession is coming which will cut his pay, which is really bad given that he’s been spending more than he makes already.
At the very least, what does this make the guy who insisted on buying the house look like?
We’ll talk more about this tomorrow.