United Arab Emirates company takes 8% stake in AMD
Amid repeated quarterly losses, which have added up to $2.18 billion thus far, AMD says it has received a meaty investment from a company in the United Arab Emirates. The investment comes from a subsidiary of the Mubadala Development Company, which is itself owned by the Abu Dhabi government and specializes in creating new companies and acquiring strategic holdings in existing firms. Mubadala's investment in AMD adds up to $622 million, or 49 million shares at $12.7 per share, representing a stake of 8.1% in the chipmaker. After reimbursing Mubadala for $14.6 million in expenses, AMD says it has received "approximately $608 million."
According to AMD, the cash will be used for "general corporate purposes including accelerating [AMD's] long-term, customer-focused growth strategy by investing in R&D, product innovations and manufacturing excellence." Mubadala's CEO and Managing Director, Khaldoon Khalifa Al Mubarak, says of the deal, "AMD is a great fit for Mubadala's investment approach — a spirited competitor and innovator led by a strong and visionary management team. We see significant opportunities for long-term growth and value creation." However, Mubadala's investment is non-controlling, and the firm will not receive any representation on AMD's board.