AMD Sells 8.1 Percent Stake to Mideast Firm

The Abu Dhabi government's investment arm paid $622 million for an 8.1% stake in Advanced Micro Devices Incorporated. A unit of Mubadala Development Company received 49 million newly-issued AMD shares at a closing price of $12.70 each. The Sunnyvale-based chip maker received about $608 million, after reimbursing the United Arab Emirates investment firm for approximately $14.6 million in expenses. The world's second largest microprocessor maker said it will use the proceeds for general corporate purposes including investing in research and development, product innovations and manufacturing. The company said Mubadala will not receive any board representation as part of the non-controlling, minority investment - therefore this transaction isn't subject to review by the Committee on Foreign Investment in the U.S.

News source: Physorg

Report a problem with article
Previous Story

Microsoft postpones Winhec 2008 to Fall 2008

Next Story

Washington's $50 Billion Tech Plan Derailed by Lawsuit


Commenting is disabled on this article.

Mystnight said,
I smell possible hostile take over, if that happens, Im going back to intel

i don't think you smell ****.

Arab countries posses stakes in companies you buy fuel for your car from. They have also invested in virtually all other industries. Example: Former Canadian Fairmont now belongs to a Saudi firm. Delta Hotels is Fairmont's subsidiary which means it is now owned by Saudis too. Speaking about Saudis in general, they are the largest investors into American economy and in control of huge U.S. Dollar reserves.

So let's not get over-excited about AMD =) It is not the first and certainly not the last company to sell stakes to the Middle Eastern investors.

hmm , interestingly political...

Intel has labs in Israel, so AMD goes and does this in an Arabic country... so much for peace in the middle east, eh?

Probably has to do a lot with cost, regulations, and other items.. i'd say... politics is at the very bottom of the list.

AMD and Intel are in the business of making money, not taking political sides or views... last I checked....