This is POTENTIAL LOSS. As AMD fabs are currently very busy, there should be no loss, but the potential exists. This is the key point of ASSET LIGHT...you are light in stocking ASSETS that DEPRECIATE. Intellectual property rights typically do not depreciate in value, but physical things other than buildings do. I am sure that AMD owes Germany somewhat for the loans to build the current fabs, if memory serves me right, so some debt would be gone along with the purchase of the fabs. Money from the deal lines the execs pockets, the remainder goes to pay down debt, and all is well, as they can then lay off yet more staff, and only keep key personal for future development, and likely only a few engineering teams, and some sales and execs.
In the end, we all knew this was going to come, Hector has left now that it's non-reverseable. I wish German governemnt could somehow find HIM personally liable for any loss AMD posts, becasue I think you could find most of that money in his possesion...AMD wouldn't be bleeding so much if thier execs took a severe pay hike...
And Miss Banana...there is LOTS of companies that have gone "Assest Light" before....but maybe only 1% still exist. Another way to explain assest light is selling of company property to pay teh employees...and this is exactly what is happening.
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