Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Goutam who wrote (89199)	1/24/2000 1:21:00 PM
From: Charles R	Read Replies (2) of 1572637

Goutama, <I agree with you a spin off would be great for the shareholders. But for now, AMD needs it more than ever to fend off and CPU pricing pressure from Intel.> I say it makes a lot of sense to announce the decision now for a spinoff in Q2. A few reasons: This company has just begun spitting off massive amounts of cash. Sale of networking division will get more cash. Beyond that, the leverage from Athlon is sufficient. And a word about pricing pressure: Even if high-end pricing falls to under $150 (currently at about $250), AMD is going to generate over $100 worth of cash per each Thunderbird CPU coming out of Dresden! Chuck

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