Time will tell if this proves to be a somber moment or cause for celebration, but AMD on Wednesday announced that it had secured stockholder approval for the creation of 'The Foundry Company.' That means AMD can now officially focus its efforts on the design of new chips and technologies, leaving the burden of manufacturing and associated costs to its Abu Dhabi-based spinoff.
While the split into separate design and manufacturing firms represents a major shift for the No. 2 CPU maker, the original vote had to be postponed after a low turnout by shareholders last week. At the time, 97 percent of the shares voted were cast in favor of the spinoff, but the shares voted represented only 42 percent of its total stock. This time around, AMD managed to scrounge up the majority vote it needed.
Under terms of the deal, AMD stockholders approved a proposal to issue 58 million shares of the company's common stock with warrants to purchase 35 million shares of its common stock and 35 million shares of the common stock upon exercise of those warrants to an affiliate of the Mubadala Development Company PJSC.
The transaction is expected to close by March 2, 2009.