AMD to Raise Cash by Selling 58-acre Campus and Leasing Back Space
AMD is not doing so good at the moment. In October, the company reported losses of US$157 million and a 10% drop in revenue. As a result, the company also said that it will layoff 15% of its work force to cut costs.
To help balance the account books, AMD is said to be planning on selling its massive 58-acre Lone Star campus in Austin, Texas. Such a sale would probably raise around US$200 million. AMD would then lease back the space, thereby liquidizing some of its real estate assets to add to its own cash reserves.
Such a move is not new. Creative Technologies did the same in 2008 when it sold its headquarters.