Apparently, ATIC was developed, at least for the time being, exclusively to handle Abu Dhabi’s interest in The Foundry Company (which I shorten to TFC), though their mission statement indicates they may be looking at other opportunities as well. Furthermore, for the 12-months following the deal’s closing, Mubadala will help ATIC look after their TFC investment. They will pay $2.1 billion, $1.4 billion to TFC for their shares, and $700 million to AMD, which AMD will give to TFC for its shares. These numbers haven’t changed since the October 8-K filling with the Securities Exchange Commission, but what ATIC gets in return has. The December 8th amendment mentioned above also changed the value accorded to the assets AMD is giving TFC, so the original 44.4/55.6 AMD/ATIC split is now 34.2/65.8.
Those numbers represent economic ownership, the voting shares will be split down the middle, and the board of eight will have four appointees from AMD and four from ATIC. Also, TFC will be taking 1.2 billion of AMD’s debt with it. Furthermore, ATIC has committed from $3.6 to $6 billion for immediate expansion of AMD’s (which will then be TFC’s) Dresden facility and a new facility in the New York capitol region.
Even then it may look like AMD is taking a beating, but it is like the clause you have to back out of an offer on a house if there is a major change before closing. Plus, AMD needs the money more than they did two months ago, even if it is less money. And they secure access to fabrication capacity they never could have afforded on their own.
Having dealt with AMD, Mubadala, and ATIC in this and the previous articles, in the next we turn our attention to the business they hope to create, The Foundry Company.