The favorable economic conditions from Austin and the size of the campus means the chipmaker could get between $150 million and $200 million for the property. If AMD will sell the campus it will unlock money and will be able to fund operations. A multiyear lease-back contract will mean that AMD won’t have to move from the site.
This is not the first time AMD follows this approach. In the past Advanced Micro Devices Inc also sold and then leased back a building near Toronto and its Sunnyvale, California HQ. While companies like Apple experience a growth in popularity AMD sees the effects on the PC market. Because of an increasing tablet demand there is less demand for personal computers. AMD is currently one of the oldest chipmakers but now it’s struggling with its cash reserves. AMD even fired engineers but couldn’t find a balance. Black Friday brought relatively good news to AMD as between Black Friday and Cyber Monday the company had a good performance.