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Politics : Formerly About Advanced Micro Devices

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To: Aaron Cooperband who wrote (4899)1/30/1997 11:53:00 PM
From: AK2004   of 1577644
 
Aaron
there are few things that you should consider
1)amd did not have any home-grown design so it was do or die
In another words if amd would not be able to provide the next generation chip they would loose whatever left of so called "good will" value of the company. By providing a chip they increase their "good will" value and that is worth a lot even though it is hard to express it $$$.
2)I think it was actually $800M but Nexgen was worth more than that in tech and reputation, IMHO. Nexgen was forced to sell because they run into financial problems basically they run out of the money. What I am trying to say that if you have 1 company that is worth 3B and another that is worth .8B when you combine them you get 3.8B so the money did not go anywhere and no earnings are needed to cover this 800M. You can not even say that shares got diluted in this case either because you will hear a strong objection from former nexgen holders.
3)and most important is that whatever happened in the past is already priced-in and we should rather look for how it is going to perform in the future.
Regards
-Albert
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