AMD to Sell Austin Campus in Effort To Raise Cash ReservesWed, Nov 28, 2012 - 9:42 AM
It is common knowledge that Advanced Micro Devices (AMD) has been struggling with slowing personal computer (PC) sales due to competition from tablets and it looks like it is not going to be getting better anytime soon. AMD has announced plans to sell its 58 acre campus in Austin, Texas in a transaction that will raise between $150 million-$200 million and is expected to close in the second quarter. AMD has been depleting its cash reserves and has been laying off employees as it endeavours to find new markets for its products. On Tuesday, AMD Chief Executive Rory Read told investors at a conference in Scottsdale, Arizona, that results from the U.S. Thanksgiving weekend look encouraging for PC sales although it is too early to make predictions about the entire holiday shopping season, and the PC industry still faces long-term problems. Ouch!
“There are favorable economic conditions in the part of Austin where the campus is located,” Prairie said. “Contingent on finding an investor who wants to do a multiyear lease-back, it’s a good opportunity for us to unlock the value of the real estate to fund operations.”