Shares of Advanced Micro Devices, Inc.(NYSE:AMD) have rebounded about 11% in the past one week with the stock gaining 6% in today’s session. However, the stock is still down 61% so far this year.
Advanced Micro Device plans on selling the leasing back its campus in Texas so as to raise finances and fund its chipmaking business as it expands outside the struggling PC industry into new horizons.
AMD wishes to sell the 58-acre spot for an amount ranging from $150 million and $200 million. It also expects to close an agreement in the second quarter, as told by Drew Prairie, a spokesman of AMD, to Reuters on Tuesday.
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The move taken by AMD to sell its campus was reported earlier by the Austin American Statesman. This comes as the company and its bigger competitor, Intel fight with slackening PC sales.
Prairie said that there happens to be favorable economic conditions in the part of Austin, Texas, where the campus is located. Dependent on finding a shareholder, who is willing to do a multiyear lease-back, it seems to be a good chance for AMD to release the value of the real estate to finance operations.
Headquarters of the company in Sunnyvale, California and a building located near Toronto were sold and leased back in the past, as mentioned by Prairie.
The growing popularity of the iPad and other tablets has hurt the demand for PCs. With economic growth of China slowing, Europe’s economy vacillating and US’s economic moderate recovery, international shipments are predicted to decline to some extent this year.
AMD is one of Silicon Valley’s oldest chipmakers. It has been laying off engineers and looking for new markets for its chips as it experiences diminishing cash reserves.
Chief Executive of AMD, Rory Read said to shareholders in a conference held in Scottsdale that results of the US Thanksgiving weekend seem hopeful for PC sales even though it is too early to make estimations about the overall shopping season.
Read said that there has been some optimistic news out of Black Friday over the past few days. AMD has performed convincingly well over the period.